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:

Required:

By how much would the compony's operoting income incresse if Voncouver incressed its sales by $$84,000$ per year? Assume no

change in cost behaviour patterns.

Increase in aperating income

$2-$a$.$ Refer to the original dato. Assume that sales in Toronto increase by $$100,000$ next year and that sales in Vancouver remain

unchanged. Assume no change in fixed costs. Prepore a new segmented income statement for the company. $($Round your percentage

answers to $2$ decimal places.$)$