Hi there,

Could someone please help me solve the following;

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 $ 1,000,009 100.00% $300,000 100% $ /00,000 100% Variable expenses 490,000 49.00 105,000 35 385,000 55 Contribution margin 510,000 51.00 195,000 65 315,000 45 Traceable fixed expenses 280,000 28.00 168,000 56 112,000 16 Office segment margin 230,000 23.00 $ 27,000 9% $203,000 29% Common fixed expenses not traceable to offices 84,000 8.40 Operating income $ 146,000 14.60% Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $80,000 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 $120,000 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 % Amount %