Middleton Associates is a consulting firm that specializes in information systems for construction and landscaping companies. The firm has two officesone 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: Contribution margin Sales Variable expenses Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Operating income Office Total Company Toronto Vancouver $800,000 100.0% $160,000 100% $640,000 100% 472,000 59.00 56,000 35 416,000 65 328,000 41.00 104,000 65 224,000 35 187,200 23.40 91,200 57 96,000 15 140,800 17.60 $ 12,800 8% $128,000 20% 120,000 15.00 $ 20,800 2.60% Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $73,000 per year? Assume no change in cost behaviour patterns. Increase in operating income