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: Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Operating income Total Company Toronto Office Vancouver $750,000 100.0% $130,000 100% $620,000 100% 373,500 49.80 376,500 50.20 121,200 16.16 341,000 55 279,000 45 74,400 255,300 34.04 $ 50,700 39% $204,600 32,500 25 97,500 75 46,800 36 12 33% 120,000 16.00 $135,300 18.04% Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $71,000 per year? Assume no change in cost behaviour patterns. Increase in operating income $ 37,500 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.) increase in operating income $ 37,500 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 Total Company Toronto Vancouver Amount % Amount % Amount % + 0 0.00 0 0.00 0 0.00 $ 0 0.00 $ 0 0.00 $ 0 0.00 $ 0 0.00