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	$	750,000	100.0	%	$	130,000	100	%	$	620,000	100	%
Variable expenses		373,500	49.80			32,500	25			341,000	55
Contribution margin		376,500	50.20			97,500	75			279,000	45
Traceable fixed expenses		121,200	16.16			46,800	36			74,400	12
Office segment margin		255,300	34.04		$	50,700	39	%	$	204,600	33	%
Common fixed expenses not traceable to offices		120,000	16.00
Operating income	$	135,300	18.04	%

Required: 1. By how much would the companys operating income increase if Vancouver increased its sales by $71,000 per year? Assume no change in cost behaviour patterns.

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.)

			Segments
	Total Company		Toronto		Vancouver
	Amount	%	Amount	%	Amount	%
Sales
Variable expenses
Contribution margin	$0	0.00	0	0.00	0	0.00
Traceable fixed expenses
Office segment margin	$0	0.00	$0	0.00	$0	0.00
Common fixed expenses not traceable to segments
Operating income	$0	0.00