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	$	900,000	100.0	%	$	120,000	100	%	$	780,000	100	%
Variable expenses		414,000	46.00			24,000	20			390,000	50
Contribution margin		486,000	54.00			96,000	80			390,000	50
Traceable fixed expenses		187,200	20.80			46,800	39			140,400	18
Office segment margin		298,800	33.20		$	49,200	41	%	$	249,600	32	%
Common fixed expenses not traceable to offices		117,000	13.00
Operating income	$	181,800	20.20	%

Required: 1. By how much would the companys operating income increase if Vancouver increased its sales by $87,000 per year? Assume no change in cost behaviour patterns.

2. Refer to the original data. Assume that sales in Toronto increase by $75,000 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.)