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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
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. Total Company $ 750, eee 100.cox 420,00 56.00 Toronto $ 180,00 38.000 office Vancouver Teex $ 650,00 30 390,000 ge Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin 330,eee 156, 44.ee 20.ga 70,000 52, 7e 52 260,000 104,000 16 174,000 23.28 5 18,00 18% $ 155,00 24 Common fixed expenses not traceable to offices Operating income 15.60 $ 57,000 7.60 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 COS our patterns Incente 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 Toronto Amount Segments Vancouver Amount Amount %
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