3 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: 6 points Sales Variable expenses Contribution margin Tracmable fixed expenses office segment margin Common fixed expenses ut treceable to offices Operating income office Total Company Toronto Vancouver $750,000 100.00 $130,000 1008 $620,000 1000 373,500 49.80 32,500 25 341,000 55 376,500 50.20 97,500 75 279,000 45 121,200 16.16 16,800 36 74,400 12 255,300 34.04 $ 50,700 394 $204,600 33 120,000 16.00 $135,300 18.049 Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $71,000 per year? Assure change in cost behaviour patterns. Increase in operating income S S 31.950 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.) Segments Total Company Toronto Vancouver Amount % Amount Screenshot IS 800,000 100.00 $ 100.00 $ 180,000 180,000 100.00 $ 620.000 100.00 / Sales m Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $71,000 per year? Assume no change in cost behaviour patterns. Increase in operating income s 31,950 6 points 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.) Total Company Amount Toronto Amount Segments Vancouver % Amount % Sales S 0 0.00 0 0.00 0 0.00 s 0 0.00 $ 0 0.00 S 0 0.00 s 0 0.00 2-b. This part of the question is not part of your Connect assignment. Screenshot