Marple Associates is a consulting firm that specializes in information systems for construction and landscaping companies. The firm has two officesone in Houston and one in Dallas. The firm classifies the direct costs of consulting jobs as variable costs. A segmented contribution format income statement for the companys most recent year is given below:

					Office
	Total Company				Houston				Dallas
Sales	$	487,500	100.0	%	$	97,500	100	%	$	390,000	100	%
Variable expenses		263,250	54.0			29,250	30			234,000	60
Contribution margin		224,250	46.0			68,250	70			156,000	40
Traceable fixed expenses		109,200	22.4			50,700	52			58,500	15
Office segment margin		115,050	23.6		$	17,550	18	%	$	97,500	25	%
Common fixed expenses not traceable to offices		78,000	16.0
Net operating income	$	37,050	7.6	%

1.

value: 2.00 points

Required information

Required:

1.	By how much would the companys net operating income increase if Dallas increased its sales by $48,750 per year? Assume no change in cost behavior patterns.
	what is the net income increase?

Refer to the original data. Assume that sales in Houston increase by $32,500 next year and that sales in Dallas remain unchanged. Assume no change in fixed costs.

a.	Prepare a new segmented income statement for the company. (Round your percentage answers to 1 decimal place.)