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Middleton Associates is a consulting firm that specializes in information systems for construction and landscaping companies. The fir has two offices-one in Toronto and one

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Middleton Associates is a consulting firm that specializes in information systems for construction and landscaping companies. The fir 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 Office Total Company Toronto Vancouver $1,000,000 100.0% $300,000 1001 $700,000 100% 490,000 49.00 105,000 35 385,000 55 510,000 51.00 195,000 65 315,000 45 280,000 28.00 168,000 56 112,080 16 230,000 23.00 $ 27,088 94 $203,000 294 84.000 8.40 $ 146,000 14.60% Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $80,000 per year? Assume no change in cost behaviour patterns. Increase in operating income 2-a. Refer to the original data. Assume that sales in Toronto increase by $120,000 next year and that sales in Vancouver remain unchanged. Assume no change in fixed costs. Prepare a new segmented income statement for the company. (Round your percentage answers to 2 decimal places.) Total Company Amount Toronto Amount Segments Vancouver % Amount Required: 1. By how much would the company's operating income increase if Vancouver Increased its sales by $80,000 per year? Assume no change in cost behaviour patterns. Increase in operating income oped Book 2-a. Refer to the original data. Assume that sales in Toronto Increase by $120,000 next year and that soles in Vancouver remain unchanged. Assume no change in fixed costs. Prepare a new segmented income statement for the company. (Round your percentage answers to 2 decimal places.) Print Total Company Amount % Toronto Amount Segments Vancouver Amount $ 0 0.00 0 0.00 0 0.00 5 0.005 0 0.005 0 0.00 $ 0 0.00

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