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Required information (The following information applies to the questions displayed below.) Raner, Harris and 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 and Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two officesone 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 $ 490,500 100% 245, 250 50% 245, 250 50% 137,340 28% 107,910 22% 68,670 14% $ 39, 240 8% Office Chicago Minneapolis $ 163,500 100% $ 327,000 100% 49,050 30% 196, 200 60% 114,450 70% 130,800 40% 85,020 52% 52,320 16% $ 29,430 18% $ 78,480 24% 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $81,750 per year? Assume no change in cost behavior patterns. Net operating income increase Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 490,500 100% 245, 250 50% 245, 250 50% 137,340 28% 107,910 22% 68,670 14% $ 39, 240 8% Office Chicago Minneapolis $ 163,500 100% $ 327,000 100% 49,050 30% 196, 200 60% 114,450 70% 130,800 40% 85,020 52% 52,320 16% $ 29,430 18% $ 78,480 24% 3. Assume that sales in Chicago increase by $54,500 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 intermediate calculations and percentage answers to 1 decimal place (i.e. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar.)) Segments Total Company Chicago Minneapolis Amount % Amount % Amount % 0 0.0 0 0.0 0 0.0 0 0.0 $ 0 0.0 $ 0 0.0 $ 0 0.0

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