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: Total Company $450,000 1001 225.000 50 225,000 503 125,000 99,000 220 63,000 140 36.000 88 Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income office Chicago Minneapolis $ 150,000 1008 $ 300,000 1000 45.000 300 180.000 608 105,000 TON 120,000 400 78.000 520 48.000 161 $ 27,000 $ 72,000 280 2. By how much would the company's net operating Income Increase if Minneapolis increased its sales by $75.000 per year? Assume no change in cost behavior patterns. Not operating income increase 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 300 Total Company $ 450,000 1000 225,000 508 225,000 501 126.000 288 99,000 220 63,000 140 $36,000 88 Office Chicago Minneapolis $ 150,000 1008 $ 300,000 1001 45.000 180.000 105,000 700 120,000 400 78,000 520 48.000 165 $ 27,000 188 $ 72,000 241 3. Assume that sales in Chicago increase by $50,000 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 percentage answers to 1 decimal place le. 0.1234 should be entered as 12.3).) 5 Total Company Chicago Amount Segments Minneapolis Amount Amount 0 0.0 0 00 0 0.0 0.0 5 0 0.0 5 0 0 0.0 $ 0 0.0