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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 officesone 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 $ 787,500 100.0% 425,250 54.0% 362,250 46.0% 176,400 22.4% 185,850 23.6% 126,000 16.0% $ 59,850 7.6% Office Chicago Minneapolis $ 157,500 100% $ 630,000 100% 47,250 30% 378,000 60% 110,250 70% 252,000 40% 81,900 52% 94,500 15% $ 28,350 18% $ 157,500 25% 3. Assume that sales in Chicago increase by $52,500 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 percentage answers to 1 decimal place (i.e. 0.1234 should be entered as 12.3).) Total Company Amount % Chicago Amount Segments Minneapolis Amount % % 0 0. 0 0 0. 0 0 0.0 0 00 $ 0 00 $ 0 0.0 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $78,750 per year? Assume no change in cost behavior patterns. Net operating income increase

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