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Answer both questions ASAP please. I will upvote! Middleton Associates is a consulting firm that specializes in information systems for construction and landscaping companies. The
Answer both questions ASAP please. I will upvote!
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: Office Total Company Toronto Vancouver Sales $1,050,000 100.04 $150,000 1000 5900,000 100% Variable expenses 585,000 55.71 45,000 30 540,000 60 Contribution margin 465,000 44.29 105,000 70 360,000 40 Traceable fixed expenses 153,000 14.57 63,000 42 90,000 10 office segment margin 312,000 29.71 $ 42,000 284 $278,000 309 Connon fixed expenses not traceable to offices 108,000 10.29 Operating income $ 204,000 19.438 Required: 1. By how much would the company's operating Income increase if Vancouver increased its sales by $94,000 per year? Assume no change in cost behaviour patterns. Increase in operating income 2-a. Refer to the original data. Assume that sales in Toronto increase by $75,000 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 Toronto Vancouver Total Company Amount % Amount % Amount Step by Step Solution
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