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 $ $1,050,000100\mathrm{.}0\%$ $ $150,000100\%$ $ $900,000100\%$

Variable expenses $585,00055\mathrm{.}7145,00030540,00060$

Contribution margin $465,00044\mathrm{.}29105,00070360,00040$

Traceable fixed expenses $153,00014\mathrm{.}5763,0004290,00010$

Office segment margin $312,00029\mathrm{.}71$ $ $42,00028\%$ $ $270,00030\%$

Common fixed expenses

not traceable to offices $108,00010\mathrm{.}29$

Operating income $ $204,00019\mathrm{.}43\%$

Required:

By how much would the company$$s operating income increase if Vancouver increased its sales by $$94,000$ per year? Assume no change in cost behaviour patterns.

$2-$a$.$ Refer to the original data. Assume that sales in Toronto increase by $$75,000$ next year and that sales in Vancouver remain unchanged. Assume no change in fixed costs. Prepare a new segmented income statement for the company.

Note: Round your percentage answers to $1$ decimal place.