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 Office Toronto: Vancouver $960,000 100.0% $160,000 100% $800,000 100% 528,000 55.00 48,000 30 480,000 60 432,000 45.00 112,000 70 172,800 18.00 92,800 58 320,000 40 80,000 10 259,200 27.00 $ 19,200 12% $240,000 30% 120,000 12.50 $139,200 14.50% Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $89,000 per year? Assume no change in cost behaviour patterns. Increase in operating income $ 35,600 2-a. Refer to the original data. Assume that sales in Toronto increase by $40,000 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.) 2-a. Refer to the original data. Assume that sales in Toronto increase by $40,000 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 % Sales Variable expenses Contribution margin $ 800,000 100.00 480,000 60.00 $ 0 0.00 0 0.00 320,000 40.00 Traceable fixed expenses 240,000 30.00 Office segment margin $ 0 0.00 $ 0 0.00 $ 80,000 10.00 Common fixed expenses not traceable to segments Operating income $ 0 0.00