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: Total Company 1,100,000 100.00% Sales Office Vancouver 100% $ 770,000 100% 35 500,500 65 $ Toronto $ 330,000 115,500 Variable expenses 616,000 56.00 Contribution margin Traceable fixed expenses 484,000 308,000 44.00 28.00 214,500 184,800 65 56 269,500 123,200 35 16 Office segment margin 176,000 16.00 $ 29,700 9% $ 146,300 19% Common fixed expenses not traceable to offices 110,000 10.00 Operating income $ 66,000 6.00% Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $86,000 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 $150,000 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 Vancouver Total Company Amount % Toronto Amount % Amount %