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[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
[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 Sales Total Company $504,000 Chicago Hinneapolis Variable expenses 252,000 100.00% 50.00% $ 168,000 100.00% $ 336,000 100.00% 50,400 30.00% 201,600 60.00% Contribution margin 252,000 50.00% 117,600 70.00% 134,400 40.00% Traceable fixed expenses 141,120 28.00% 87,360 52.00% 53,760 16.00% Office segment margin 110,880 22.00% $ 30,240 18.00% $ 80,640 24.00% Common fixed expenses not traceable to offices 70,560 14.00% Net operating income. $ 40,320 8.00% 2. By how much would the company's net operating income increase if Minneapolis Increased its sales by $84,000 per year? Assume t no change in cost behavior patterns. Net operating income increase
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