Middleton Associates is a consulting firm that specializes in information systems for construction and landscaping companies. The firm has two officesone 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 companys most recent year is given below:

					Office
	Total Company				Toronto				Vancouver
Sales	$	800,000	100.0	%	$	120,000	100	%	$	680,000	100	%
Variable expenses		444,000	55.50			36,000	30			408,000	60
Contribution margin		356,000	44.50			84,000	70			272,000	40
Traceable fixed expenses		129,200	16.15			61,200	51			68,000	10
Office segment margin		226,800	28.35		$	22,800	19	%	$	204,000	30	%
Common fixed expenses not traceable to offices		102,000	12.75
Operating income	$	124,800	15.60	%

Required: 1. By how much would the companys operating income increase if Vancouver increased its sales by $77,000 per year? Assume no change in cost behaviour patterns.

2-a. 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. Prepare a new segmented income statement for the company. (Round your percentage answers to 2 decimal places.)

Segments Toronto Vancouver Total Company Amount % Amount % Amount %