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 Office Total Company $1,000,000 100.0% 565,000 56.50 Toronto Vancouver $140,000 100% 435,000 43.50 197,800 19.78 237,200 23.72 $860,000 100% 516,000 49,000 35 344,000 91,000 65 137,600 16 60,200 43 24% $ 30,800 22% $206,400 60 40 107,500 10.75 $ 129,700 12.97% I Operating income Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $92,000 per year? Assume no change in cost behaviour patterns. Increase in operating income $ 36,800