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	100.00	%	$	100,000	100	%	$	650,000	100	%
Variable expenses		420,000	56.00			30,000	30			390,000	60
Contribution margin		330,000	44.00			70,000	70			260,000	40
Traceable fixed expenses		156,000	20.80			52,000	52			104,000	16
Office segment margin		174,000	23.20		$	18,000	18	%	$	156,000	24	%
Common fixed expenses not traceable to offices		117,000	15.60
Operating income	$	57,000	7.60	%

Required:

1.	By how much would the companys operating income increase if Vancouver increased its sales by $74,000 per year? Assume no change in cost behaviour patterns.

2-a.	Refer to the original data. Assume that sales in Toronto increase by $30,000 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.)