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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 Minneapolls. 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 $ 476,000 10 236,200 50% 219,300 50X 134,340 2X 104,400 22% 66,640 14 $ 37,820 Office Chicago Minneapolis $ 163,000 100% $ 113,000 100% 48.900 30% 187,800 6ex 114,100 7032 125,200 84,760 5 50,080 16% 5 29,340 TRE $75,120 24% 2. By how much would the company's net operating income increase if Minneapolis Increased its sales by $81,500 per year? Assume no change in cost behavior patterns Not aporating Income increase
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