Middleton Associates is a consulting firm that specializes in information systems for construction and landscaping companies. The firm has two officesone 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 $ 800,000 100.00% 472,000 59.00 Sales Variable expenses Office Vancouver 100% $ 640,000 100% 35 416,000 65 Toronto $ 160,000 56,000 Contribution margin Traceable fixed expenses 328,000 187,200 41.00 23.40 104,000 91,200 65 57 224,000 96,000 35 15 office segment margin 140,800 17.60 $ 12,800 8 % $ 128,000 20% Common fixed expenses not traceable to offices 120,000 15.00 Operating income $ 20,800 2.60% Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $73,000 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 $160,000 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 %