Business, 27.04.2021 16:10 jay0630

Office Total Company Chicago Minneapolis
Sales $460,000 100% $155,000 100% $305,000 100%
Variable expenses 229,500 50% 46,500 30% 183,000 60%
Contribution margin 230,500 50% 108,500 70% 122,000 40%
Traceable fixed expenses 129,400 28% 80,600 52% 48,800 16%
Office segment margin 101,100 22% $27,900 18% $73,200 24%
Common fixed expenses not traceable to offices 64,400 14%
Net operating income $36,700 8%

Required:
By how much would the company’s net operating income increase if Minneapolis increased its sales by $56,250 per year?

Answers: 3

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Office Total Company Chicago Minneapolis
Sales $460,000 100% $155,000 100% $305,000 100%

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