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Required information [The following mformation 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 mformation 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 Connon fixed expenses not traceable to offices Het operating Incone Total Company $ 507,000 100% 253 500 50% 255,500 SOX 141, 960 20% 111,540 22 70,980 5.40,560 Office Chicago Pinneapolis $ 178,500 100% $ 328,500 100% 53.550 30% 197, 100 60 124,950 701 131,400 40% 92320 52% 52,560 168 $ 32,130 18% $78,840 245 2. By how much would the company's net operating income increase W Minneapolis increased its sales by $84,500 per year? Assume no change in cost behavior pattems 3 nes Bit operiting into Increase

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