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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 Not operating income Total Company $ 535,500 100.000 267, 750 50.00% 267,750 50.000 149,940 28.000 117,810 22.000 office Chicago Minneapolis $ 178,500 100.000 357,000 100.00 53,550 30.000 214, 200 60.00 124,950 70.000 142,800 40.000 92,820 52.000 57, 120 16.000 $ 32, 130 18.000 $ 85,680 24.00 74,970 42,840 14.000 8.000 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $89,250 per year? Assume no change in cost behavior patterns. Net operating income increase 3. Assume that sales in Chicago increase by $59,500 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 intermediate calculations and percentage answers to 1 decimal place (i.e. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar.)) Total Company Chicago Amount Segments Minneapolis Amount % Amount %

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