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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 $830,000 100.0% $220,000 100% 5660,000 100% Variable expenses 374,000 42.50 44,000 2e 330.00050 Contribution sargin 506,000 57.50 176,000 80 330,00050 Traceable fixed expenses 237.600 27.00 118,800 56 118,300 18 Office segment margin 268.400 30.50 $57.200 26% $211,200 328 Connon fixed expenses not traceable to offices 99,000 11.25 Operating income $169,400 19.25% Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $75,000 per year? Assume no change in cost behaviour patterns. Increase in operating income 2-o. Refer to the original data. Assume that sales in Toronto increase by $110,000 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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