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 companys most recent year is given below:

					Office
	Total Company				Toronto				Vancouver
Sales	$	1,000,000	100.00	%	$	280,000	100	%	$	720,000	100	%
Variable expenses		516,000	51.60			84,000	30			432,000	60
Contribution margin		484,000	48.40			196,000	70			288,000	40
Traceable fixed expenses		259,200	25.92			151,200	54			108,000	15
Office segment margin		224,800	22.48		$	44,800	16	%	$	180,000	25	%
Common fixed expenses not traceable to offices		81,000	8.10
Operating income	$	143,800	14.38	%

Required: 1. By how much would the companys operating income increase if Vancouver increased its sales by $81,000 per year? Assume no change in cost behaviour patterns.

2-a. Refer to the original data. Assume that sales in Toronto increase by $80,000 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.)