! Required information [The following information applies to the questions displayed below.] Raner, Harris and Chan...
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! Required information [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: Office Total Company Chicago Minneapolis Sales $ 454,500 100.00% Variable expenses 227,250 50.00% Contribution margin 227,250 50.00% $ 151,500 45,450 106,050 100.00% 30.00% $ 303,000 100.00% 181,800 60.00% 70.00% 121,200 40.00% Traceable fixed expenses 127,260 28.00% 78,780 52.00% 48,480 16.00% Office segment margin 99,990 22.00% $ 27,270 18.00% $ 72,720 24.00% Common fixed expenses not traceable to offices 63,630 Net operating income $ 36,360 14.00% 8.00% 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $75,750 per year? Assume no change in cost behavior patterns. Net operating income increase ! Required information [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: Office Total Company Chicago Minneapolis Sales $ 454,500 100.00% Variable expenses 227,250 50.00% Contribution margin 227,250 50.00% $ 151,500 45,450 106,050 100.00% 30.00% $ 303,000 100.00% 181,800 60.00% 70.00% 121,200 40.00% Traceable fixed expenses 127,260 28.00% 78,780 52.00% 48,480 16.00% Office segment margin 99,990 22.00% $ 27,270 18.00% $ 72,720 24.00% Common fixed expenses not traceable to offices 63,630 Net operating income $ 36,360 14.00% 8.00% 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $75,750 per year? Assume no change in cost behavior patterns. Net operating income increase
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