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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: Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Operating income Office Total Company Toronto Vancouver $750,000 100.01 $100.000 1000 $650,000 1004 420,000 56.00 30,000 30 390,000 60 330,000 44.00 70,000 70 260,000 40 156,000 20.80 52,000 52 104,000 16 174,000 23.20 $ 18,000 181 $156,000 245 117,000 15.60 $ 57,000 7.601 Required: 1. By how much would the company's operating Income increase if Vancouver increased its sales by $74,000 per year? Assume no change in cost behaviour patterns. Increase in operating income 2-a. Refer to the original data. Assume that sales in Toronto increase by $30,000 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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