Raner. Harris & Chan is a consulting firm that specializes in...
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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 office Total Company Chicago Minneapolis Sales $ 450,000 100% 5 150,000 100% $ 300,000 100% Variable expenses 235,000 45,000 2013 180,00 603 Contribution margin 225.000 50 105,000 701 120.000 40% Traceable fixed expenses 126,000 20.000 4800 16 Office went wargi 99,000 225 $ 27,000 18 $ 72,000 21 Common Fixed expenses not traceable to offices 53,000 Net operating income $ 36,000 503 Exercise 6-16 Part 2 (Static) Working with a Segmented Income Statement; Break-Even Analysis (LO6-4, LO6-5) 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 Not aparating income increase
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