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Middleton Associates is a consulting firm that specializes in information systems for construction and landscaping companies. The fir has two offices - one in Toronto

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Middleton Associates is a consulting firm that specializes in information systems for construction and landscaping companies. The fir 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 glven below: Required; 1. By how much would the company's operating income increase if Vancouver increased its sales by $71,000 per year? Assume no change in cost behaviour patterns. 2-0. 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. Prepore a new segmented income statement for the company. (Round your percentoge onswers to 2 decimol ploces.)

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