Office Total Company Chicago ...
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Accounting
| Office | |||||||||||||||||
| Total Company | Chicago | Minneapolis | |||||||||||||||
| Sales | $ | 562,500 | 100.0 | % | $ | 112,500 | 100 | % | $ | 450,000 | 100 | % | |||||
| Variable expenses | 303,750 | 54.0 | % | 33,750 | 30 | % | 270,000 | 60 | % | ||||||||
| Contribution margin | 258,750 | 46.0 | % | 78,750 | 70 | % | 180,000 | 40 | % | ||||||||
| Traceable fixed expenses | 126,000 | 22.4 | % | 58,500 | 52 | % | 67,500 | 15 | % | ||||||||
| Office segment margin | 132,750 | 23.6 | % | $ | 20,250 | 18 | % | $ | 112,500 | 25 | % | ||||||
| Common fixed expenses not traceable to offices | 90,000 | 16.0 | % | ||||||||||||||
| Net operating income | $ | 42,750 | 7.6 | % | |||||||||||||
| 2. By how much would the companys net operating income increase if Minneapolis increased its sales by $56,250 per year? Assume no change in cost behavior patterns. | |||||||||||||||||
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