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SB Exercise 6-16 through Exercise 6-1/ (Algo) [The following information applies to the questions displayed below.] Raner, Harris and Chan is a consulting firm that

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SB Exercise 6-16 through Exercise 6-1/ (Algo) [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 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 Total Company Chicago Minneapolis Sales $ 522, 000 100 . 008 $ 174, 000 100 .008 $ 348, 000 100 . 008 Variable expenses 261, 000 50 . 008 52,200 30.008 208, 800 60. 008 Contribution margin 261, 000 50 . 008 121, 800 70.008 139 , 200 40 .008 Traceable fixed expenses 146, 160 28 . 008 90 , 480 52 . 008 55, 680 16 . 008 Office segment margin 114, 840 22 . 008 $ 31, 320 18 . 008 $ 83, 520 24. 008 Common fixed expenses not traceable to offices 73, 080 14. 008 Net operating income $ 41, 760 8 . 008 Exercise 6-16 Part 2 (Algo) Working with a Segmented Income Statement; Break-Even Analysis [LO6-4, LO6-5] 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $87,000 per year? Assume no change in cost behavior patterns

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