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 $950,000 100.0% $190,000 100% $760,000 100% 513,000 54.00 437,000 46.00 174,800 18.40 57,000 30 133,000 70 68,400 361 456,000 60 304,000 40 106,400 14 262,200 27.60 $ 64,600 34% $197,600 26% 190,000 20.00 $ 72,200 7.60% Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $85,000 per year? Assume no change in cost behaviour patterns. Increase in operating income S 34,000 2-a. Refer to the original data. Assume that sales in Toronto increase by $50,000 next year and that sales in Vancouver remain unchanned Accume no channe in fived nete Pranare a new canmantad inenma statamant for the enmnanu (Daund unur narrantana