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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 ha:s 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 Chicago Minneapolis Total Company 900,000 486,000 414,000 201,600 $ 100.08 54.0% 46.0% 22.4% $180,000 54,000 126,000 93,600 1008 30% 70% 52% 18% $720,000 100% 60% 40% Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income 432,000 288,000 108,000 158- 180,000 212,400 23.6% $32,400 $ 25 % 144,000 16.08 $ 68,400 7.6% 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $90,000 per year? Assume no change in cost behavior patterns Net operating income increase
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