Question: es (Part 2) 6 Help Save & Required information (The following information applies to the questions displayed below Raner, Harris & Chan is a consulting
es (Part 2) 6 Help Save & 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 $712,50e 100.0% $142,500 1ws $57e,eee ins 384,750 54.0% 42,750 Variable expenses Contribution margin Traceable fixed expenses 99, 750 74,100 228,888 85,see 4 327,750 46.0% 168, 150 23.6% $ 25,650 1 $142,500 25% 114,000-16.0% 52% 15% office segment margin Common fixed expenses not traceable to offices Net operating income $ 54,150 7.6 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $71,250 per year? Assume no change in cost behavior patterns
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