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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 $911,000 100.00 $161,000 1001 $750,000 1001 452,250 42.70 40, 250 25 412,500 55 458,250 50.30 120, 750 75 337,500 45 172, 110 18.89 B2,110 51 90,000 12 286,140 31.41 $ 38,640 241 $247,500 331 180,000 19.76 $106,140 11.655 Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $84,000 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 $100,000 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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