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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

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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: office Total Company Toronto Vancouver Sales $750,000 100.0% $150,000 1804 $600,000 1009 Variable expenses 330,000 44.00 30,000 20 300,000 50 Contribution margin 420,000 56.00 120,000 80 300,000 50 Traceable fixed expenses 144,000 19.20 54,000 36 90,000 15 office segment margin 276,000 36.80 $ 66,000 445 5210,000 350 Common fixed expenses not traceable to offices 60,000 8.00 Operating income $216.000 28.809 Required: 1. By how much would the company's operating income increase if Vancouver Increased its sales by $93,000 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 $50,000 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 $ 0 0.00 0 0.00 0 0.00 Common fixed expenses not traceable to segments Office segment margin $ 0 0.00 $ 0 0.00 $ 0 0.00 Sales $ 0 0.00 Traceable fixed expenses FU 5 Sales Traceable fixed expenses $ Variable expenses $ Variable manufacturing overhead Variable selling $ 0 0.00 $ $ 0 0.00 $ Contribution loss Contribution margin $ 0.00

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