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 $ 800,000 100.00% 444,000 55.50 Toronto $ 120,000 36,000 Office Vancouver 100% $ 680,000 100% 30 408,000 60 Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin 356,000 129,200 44.50 16.15 84,000 61,200 70 51 272,000 68,000 40 10 226,800 28.35 $ 22,800 19% $ 204,000 30% Common fixed expenses not traceable to offices Operating income 102,000 12.75 $ 124,800 15.60% Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $77,000 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 $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.) Toronto Total Company Amount % Segments Vancouver % Amount % Amount