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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 $750,000 100.00 $120.000 1001 $630,000 1005 Variable expenses 414.000 55.20 36,00010 225,000 6 Contribution margin 336,000 44.80 84,000 70 252.000 Traceable fixed expenses 147.000 19.60 58,80049 85,200 14 Office segment sargin 189,000 25.20 $ 25,200 213 $165,500 263 Common Fisad expenses not traceable to offices 147.000 19.60 Operating income $ 42,000 5.60% Required: 1. By how much would the company's operating income increase if Vancouver Increased its sales by $72,000 per year? Assume no change in cost behaviour patterns Required: 1. By how much would the complny's operating income increase if Vancouver Increased its sales by $72,000 per year? Assume no change in cost behaviour patterns. 2-o. Refer to the original data. Assume that sales in Toronto locrease by $90,000 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

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