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 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:

Exerclse $7-16$ Part $2($Static$)$ WorkIng with a Segmented Income Statement; Break$-$Even Analysls $[$LO$7-4,$

$[07-5]$

By how much would the company's net operating income increase if Minneapolis increased its sales by $$75\mathrm{.}000$ per year? Assume

no change in cost behavior patterns.

Exercise $7-16$ Part $3($Static$)$ Working with a Segmented Income Statement; Break$-$Even Analysis $[$LO$7-4,$

$[07-5]$

Assume that sales in Chicago increase by $$50,000$ next year and that sales in Minneapolis remain unchanged. Assume no change

in fixed costs.

a$.$ Prepare a new segmented income statement for the company. $($Round your percentoge answers to $1$ declmal place $($l$.$e$.0\mathrm{.}1234$

should be entered os $12\mathrm{.}3).$