Please do not give solution in image format thanku Required InformationSB Exercise 6-16 through Exercise 6-17 (Algo)[The following information applies to the questions displayed below.]Raner, Harris and Chan is a consulting firm specializing in information systems for medical and dental clinics. The firm hastwo offices-one in Chicago and one in Minneapolis. It classifies the direct costs of consulting jobs as variable costs. Acontribution format segmented income statement for the company's most recent year is given below:SalesVariable expensesContribution marginTraceable fixed expensesOffice segrent marginCommon fixed expenses not traceable toofficesNet operating incomeTotal Company$ 454,500227,250227,250127, 25099,990Net operating income increase63,630$.36,360100.00%58.00%58.00%28.90%22.00%14.00%8.00%Chicago$ 151,50045,450106,25078,788$ 27,270Office100.00%38.00%78.00%52.80%18.00%Minneapolis$ 303,090181,800121,20048,480$ 72,729100.00%68.00%48.00%15.00%24.00%Exercise 6-16 Part 2 (Algo) Working with a Segmented Income Statement; Break-Even Analysis [LO6-4,LO6-5]2. How much would the company's net operating income increase if Minneapolis increased its sales by $75,750 per year? Assume nochange in cost behavior patterns.

Increase in net income of segment due to increase in sales shall be computed by applying the…

Answered: 2. How much would the company's net…

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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2. 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.