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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 $ 600,000 100.00 324,000 54.00 276,000 46.00 134,400 22.41 141,600 23.64 96,000 16.00 $ 45.600 7.60 office Chicago Minneapolis $ 120.000 1001 $ 480,000 1001 36.000 308 288,000 608 84,000 700 192,000 401 62,400 521 72,000 151 $ 21,600 188 $ 120,000 258 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $60.000 per year? Assume no change in cost behavior patterns. Net operating income increase

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