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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
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: Office Sales Variable expenses Contribution margin Traceable fixed expenses office segnent margin Common fixed expenses not traceable, to offices. Total Company $ 712,500 100.0% $142,500 100% 384,750 54.0% 42,750 30% 327,750 46.0% 99,750 70% 159,600 22.4 74,100 526 168,150 23.6% $ 25,650 18% 114,000 16.0 Chicago Minneapolis $570,000 100% 342,000 60% 228,000 85,500 40% 15 $142,500 258 Net operating incone $ 54,150 7.64 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $71,250 per year? Assume no change in cost behavior patterns. Net operating income increase
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