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Can someone help me finish this. Please show how each one of them is calculated. Thanks! Middleton Associates is a consulting firm that specializes in
Can someone help me finish this. Please show how each one of them is calculated. Thanks!
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: Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Operating income Office Total Company Toronto Vancouver $950,000 100.0% $190,000 100% $760,000 100% 513,000 54.00 57,000 30 456,000 60 437,000 46.00 133,000 70 304,000 40 174,800 18.40 68,400 36 106,400 14 262,200 27.60 $ 64,600 34% $197,600 26% 190,000 20.00 $ 72,200 7.60% Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $85,000 per year? Assume no change in cost behaviour patterns. Increase in operating income $ 34,000 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 % $1,000,000 100.00 Segments Toronto Vancouver Amount % Amount % $ 240,000 100.00 $ 810,000 100.00 *************** $1,000,000 100.00 240,000 100.00 810,000 100.00 Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to segments Operating income $1,000,000 100.00 $ 240,000 100.00 $ 810,000 100.00 $1,000,000 100.00Step by Step Solution
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