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Required information [The following information applies to the questions displayed below.) Raner, Harris & Chan is a consulting firm that specializes in information systems for

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Required information [The following information applies to the questions displayed below.) Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two offices-one in Chicago and one in Minneapolis. The firm classifies the direct costs of consulting jobs as variable costs. A contribution format segmented income statement for the company's most recent year is given: Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 486,000 100.000 243,000 50.000 243,000 50.000 136.000 28.000 106,920 22.000 68,040 14.000 $ 38,880 8.008 Office Chicago Minneapolis $ 162,000 100.000 $ 324,000 100.000 48,600 30.000 194,400 60.000 113,400 70.000 129.600 40.000 84.240 52.00 51.840 16.008 $ 29,160 18.000 $ 77,760 24.000 2. By how much would the company's net operating Income increase if Minneapolis Increased its sales by $81.000 per year? Assume no change in cost behavior patterns. Net operating income increase 3. Assume that sales in Chicago increase by $54,000 next year and that sales in Minneapolis remain unchanged. Assume no change In fixed costs. a. Prepare a new segmented income statement for the company. (Round your intermediate calculations and percentage answers to 1 decimal place (l.e. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar.)) Chicago Total Company Amount % Segments Minneapolis % Amount * Amount 0.0 0.0 0 0.0 0 0 0.0 $ 0 0.0 0.01$ + $ 0 00

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