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The following information applies to the questions displayed below. Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and
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 Office Total Company Chicago Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income $750,000 100.0% $ 150,000 100% $600,000 100% 360.000 60% 240,000 40% 90.000 15% 405,000 54.0% 345,000 46.0% 168,000 22.4% 45,000 30% 105,000 70% 78,000 52% 177000 23.6% $ 27,000 18% $ 150,000 25% 120,000 16.0% 57000 76% Award: 4.00 points 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
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