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Middleton Associates is a consulting firm that specializes in information systems for construction and landscaping companies. The fium 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 fium 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 Total Company $1,000,000 100.00 565,000 56.50 Toronto $140,000 49,000 Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin office Vancouver 100% $360,000 100% 35 516.00 60 05 344,000 40 49 137,600 16 435.000 197,800 43.50 19.78 91,000 60,200 s 23.72 22 341 237,200 $206,400 30,800 Common fixed expenses not traceable to offices 107,500 10.75 $ 129,700 12. Operating Income Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by 592,000 per year? Assume no change in cost behaviour patterns Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $92000 per year? Assume no change in cost behaviour patterns. Answer is complete and correct. Increase in operating income $ 35,800 2-6. 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.) Answer is not complete. 0 Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to segments Operating income Segments Total Company Toronto Vancouver Amount 96 Amount Amount 1075 000 10000 607375 56 503 5 167625 43.50 0 0.00 0.00 197 800 18.40 $ 269 825 25 10 5 0 0.00 $ D 0.00 107.500 10.00 5 162 325 15.10 Oslo

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