Middleton Associates is a consulting firm that specializes in information systems for construction and landscaping has two offices-one in Toronto and one in Vancouver. The firm classifies the direct costs of consulting jobs as var segmented contribution format income statement for the company's most recent year is given below: Sales 5:11 Variable expenses Contribution margin 3 Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Operating income ces Office Total Company Toronto Vancouver 444,000 55.50 356,000 44.50 129,200 16.15 $800,000 100.0% $120,000 100% $680,000 100% 60 408,000 272,000 40 68,000 10 36,000 30 84,000 70 61,200 51 226,800 28.35 $ 22,800 19% $204,000 30% 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 y 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 Vanco unchanged. Assume no change in fixed costs. Prepare a new segmented income statement for the company. (Rou answers to 2 decimal places.) Prev 1 of 4 Next >