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:

Dice Total t'JompanyI Toronto \\farlociner Sales 99 911,000 100.00% $151,000 100% $ ?50,000 100% Variable expenses 452,?50 45.?0 40,250 25 412,500 55 Contribution margin 455,250 50.30 120,?50 7'5 55?,500 45 Traceable xed expenses 1?2,110 15.50 52,110 51 50,000 12 Olce segment margin 255,140 31.41 5 35,540 24% S 24?,500 35% ISornmon xed expenses ncl traceable to ofces 150,000 15.?5 Operating income 5 105,140 11.55% Required: 1. By tum much would the company's cperaling income increase if Vancouver increased its sales by $54,000 per year? Assume no change in cost behaviour pattems. 2-a. Refer to the original data. Assume that sales in Toronto increase by $100,000 next year and that sales in Vancouver remain unchanged. Assume no change in xed costs. Prepare a new segmented income statement for the company. [Round your percentage answers to 2 decimal places.)