Required information SB Exercise 7-16 through Exercise 7-17 (Static) [The following information applies to the questions...

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Required information SB Exercise 7-16 through Exercise 7-17 (Static) [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 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 company's most recent year is given: Office Total Company Sales $ 450,000 Variable expenses Contribution margin 225,000 100% 50% 225,000 50% Chicago $ 150,000 100% 45,000 30% 105,000 70% Minneapolis $ 300,000 100% Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income $ 36,000 126,000 28% 99,000 22% 63,000 14% 8% 78,000 52% 180,000 120,000 48,000 16% 60% 40% $ 27,000 18% $ 72,000 24% Exercise 7-16 Part 2 (Static) Working with a Segmented Income Statement; Break-Even Analysis [LO7-4, LO7-5] 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. Answer is complete but not entirely correct. Net operating income increase $ 52,500 x S < Prev 6 10 7 of 8 Next > Required information SB Exercise 7-16 through Exercise 7-17 (Static) [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 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 company's most recent year is given: Office Total Company Sales $ 450,000 Variable expenses Contribution margin 225,000 100% 50% 225,000 50% Chicago $ 150,000 100% 45,000 30% 105,000 70% Minneapolis $ 300,000 100% Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income $ 36,000 126,000 28% 99,000 22% 63,000 14% 8% 78,000 52% 180,000 120,000 48,000 16% 60% 40% $ 27,000 18% $ 72,000 24% Exercise 7-16 Part 2 (Static) Working with a Segmented Income Statement; Break-Even Analysis [LO7-4, LO7-5] 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. Answer is complete but not entirely correct. Net operating income increase $ 52,500 x S < Prev 6 10 7 of 8 Next >