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:

Required:

By how much would the company's operating income increase if Vancouver increased its sales by $$91,000$ per year? Assume no change in cost behaviour patterns.

Increase in operating income

$2-$a$.$ Refer to the original data. Assume that sales in Toronto increase by $$50,000$ 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.$)$

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$1$ of $4$

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