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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

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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 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 $ 495, 000 100.008 $ 165,000 100.008 $ 330,000 100. 008 Variable expenses 247,500 50.008 49,500 30.008 198 ,000 60.008 Contribution margin 247,500 50 .008 115, 500 70.008 132,000 40-008 Traceable fixed expenses 138 , 600 28.008 85, 800 52.008 52,800 16.008 Office segment margin 108,900 22.008 $ 29, 700 18.008 $ 79,200 24.008 Common fixed expenses not traceable to offices 69,300 14.008 Net operating income $ 39,600 8.008 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $82,500 per year? Assume no change in cost behavior patterns. Net operating income increase

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