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	%	$	180,000	100	%	$	820,000	100	%
Variable expenses		546,000	54.60			54,000	30			492,000	60
Contribution margin		454,000	45.40			126,000	70			328,000	40
Traceable fixed expenses		172,200	17.22			73,800	41			98,400	12
Office segment margin		281,800	28.18		$	52,200	29	%	$	229,600	28	%
Common fixed expenses not traceable to offices		102,500	10.25
Operating income	$	179,300	17.93	%

Required:

1.	By how much would the companys operating income increase if Vancouver increased its sales by $90,000 per year? Assume no change in cost behaviour patterns.

2-a.	Refer to the original data. Assume that sales in Toronto increase by $25,000 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.)