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00 Middleton Associates is a consulting firm that specializes in information systems for construction and landscaping companies. The firm has two offices-one in Toronto and

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00 Middleton Associates is a consulting firm that specializes in information systems for construction and landscaping companies. The firm has two offices-one in Toronto and one in Vancouver. The firm classifies the direct costs of consulting jobs as variable costs. A segmented contribution format income statement for the company's most recent year is given below: Total Company Office Vancouver Toronto 160,000 1,000,000 100.00% Sales $ 100% $840,000 100% Variable expenses 460,000 46.00 40,000 420,000 25 50 Contribution margin 540,000 54.00 120,000 75 420.000 50 Traceable fixed expenses 193,200 19.32 67,200 126,000 42 15 Office segment margin 346,800 34.68 $ 52,800 33% $294,000 35% Common fixed expenses not traceable to offices 210,000 21.00 Operating income $ 136,800 13.68% Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $91,000 per year? Assume no change in cost behaviour patterns. Net operating income Required: 1. By how much would the company's operating income increase if Vancouver Increased its sales by $91,000 per year? Assume no change in cost behaviour patterns. Net operating income 2-a. Refer to the original data. Assume that sales in Toronto increase by $50,000 next year and that sales in Vancouver remain unchanged. Assume no change in fixed costs. Prepare a new segmented income statement for the company. (Round your percentage answers to 2 decimal places.) Toronto Total Company Amount % Segments Vancouver % Amount % Amount 0 0.00 0 0.00 0 0.00 0 0.00 $ 0 0.00 $ 0 0.00 $ 0 0.00

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