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 $ 960,000 100.0 % $ 160,000 100 % $ 800,000 100 % Variable expenses 528,000 55.00 48,000 30 480,000 60 Contribution margin 432,000 45.00 112,000 70 320,000 40 Traceable fixed expenses 172,800 18.00 92,800 58 80,000 10 Office segment margin 259,200 27.00 $ 19,200 12 % $ 240,000 30 % Common fixed expenses not traceable to offices 120,000 12.50 Operating income $ 139,200 14.50 % Required: 1. By how much would the companys operating income increase if Vancouver increased its sales by $89,000 per year? Assume no change in cost behaviour patterns. 2-a. Refer to the original data. Assume that sales in Toronto increase by $40,000 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.) 2-b. This part of the question is not part of your Connect assignment. PrevQuestion 1 of 17 Total1 of 17Visit question mapNext