Required Information Exercise 7-16 Working with a Segmented Income Statement; Break-Even Analysis (L07-4, L07-5) [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 $1,050,000 100.00 567,000 54.00 483,000 46.00 235,200 22.40 247,800 23.68 168,000 16.00 $ 79,800 7.65 office Chicago Minneapolis $ 210,000 1000 $ 840,000 1008 63,000 300 504,000 147,000 701 336,000 400 109,200 52 126,000 150 $ 37,800 188 $ 210,000 250 Exercise 7-16 Part 2 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $105,000 per year? Assume no change in cost behavior patterns. Net operating income increase