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 $ 750,000 100.00% 330,000 44.00 Sales Variable expenses Office Vancouver 1008 $ 600,000 100% 20 300,000 50 Toronto $ 150,000 30,000 Contribution margin Traceable fixed expenses 420,000 144,000 56.00 19.20 120,000 54,000 80 36 300,000 90,000 50 15 Office segment margin 276,000 36.80 $ 66,000 44% $ 210,000 35% Common fixed expenses not traceable to offices 60,000 8.00 Operating income $ 216,000 28.80% Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $93,000 per year? Assume no change in cost behaviour patterns. Increase in operating income $ 46,500 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.) Segments 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.) Segments Toronto Vancouver Total Company Amount % Amount % Amount % Sales $ 800,000 100.00 $ 200,000 100.00 $ 600,000 100.00 Variable expenses $ 800,000 100.00 200,000 100.00 600,000 100.00 Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to segments Operating income $ 800,000 100.00 $ 200,000 100.00 $ 600,000 100.00 $ 800,000 100.00