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The following Information apples to the questions displayed below. Raner, Harris, & Chan is a consulting firm that specializes In Information systems for medical and
The following Information apples 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 MInneapolls. The firm classifies the direct costs of consulting Jobs as varlable costs. A contribution format segmented Income statement for the company's most recent year is given below: Office Chicago Minneapolls Total Company 465,750 54.0% 396,750 46.0% 120,750 70% 276,000 40% $ 862,500 100.0% $172,500 100% $690,000 100% 51,750 30% 414,000 60% Sales Varlable expenses Contribution margin 89,700 52% 103,500 Traceable fixed expenses Office segment margin Common fixed expenses not 193,200 22.4% 15% 203.550 23.6% $ 31,050 18% $172,500 25% traceable to offices 138,000 16.0% Net operating Income $ 65,550 7.6% 2. value 166 points 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $86,250 per year? Assume no change in cost behavior patterns Net operating income increase
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