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 $ 1,050,000 100.0 % $ 150,000 100 % $ 900,000 100 % Variable expenses 585,000 55.71