Required informationExercise 7-16 Working with a Segmented Income Statement; Break-Even Analysis [LO7-4, LO7-5][The following information applies to the questions displayed below.] 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 MinneapolisSales$712,500 100.0% $142,500 100% $570,000 100%Variable expenses 384,750 54.0% 42,750 30% 342,000 60%Contribution margin 327,750 46.0% 99,750 70% 228,000 40%Traceable fixed expenses 159,600 22.4% 74,100 52% 85,500 15%Office segment margin 168,150 23.6% $25,650 18% $142,500 25%Common fixed expenses not traceable to offices 114,000 16.0% Net operating income$54,150 7.6% Exercise 7-16 Part 22. By how much would the company’s net operating income increase if Minneapolis increased its sales by $71,250 per year? Assume no change in cost behavior patterns.