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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 officesone 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 companys most recent year is given:

Office
Total Company Chicago Minneapolis
Sales $ 531,000 100.00 % $ 177,000 100.00 % $ 354,000 100.00 %
Variable expenses 265,500 50.00 % 53,100 30.00 % 212,400 60.00 %
Contribution margin 265,500 50.00 % 123,900 70.00 % 141,600 40.00 %
Traceable fixed expenses 148,680 28.00 % 92,040 52.00 % 56,640 16.00 %
Office segment margin 116,820 22.00 % $ 31,860 18.00 % $ 84,960 24.00 %
Common fixed expenses not traceable to offices 74,340 14.00 %
Net operating income $ 42,480 8.00 %

rev: 06_09_2020_QC_CS-215744, 09_15_2020_QC_CS-220558, 11_04_2020_QC_CS-238526, 03_30_2021_QC_CS-258090

2. By how much would the companys net operating income increase if Minneapolis increased its sales by $88,500 per year? Assume no change in cost behavior patterns.

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Required information [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: Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 531,000 100.000 265,500 50.000 265,500 50.000 148, 680 28.000 116,820 22.000 74.340 14.000 $ 42,480 8.000 office Chicago Minneapolis $ 177,000 100.000 $ 354,000 100.000 53, 100 30.000 212,400 60.003 123,900 70.000 141,600 40.000 92,040 52.00 56,640 16.000 $ 31,860 18.000 $ 84,960 24.000 2. By how much would the company's net operating income increase if Minneapolis Increased its sales by $88,500 per year? Assume no change in cost behavior patterns. Net operating income increase

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