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Middleton Associates is a consulting firm that specializes in information systems for construction and landscaping companles. The firm has two offices - one in Toronto
Middleton Associates is a consulting firm that specializes in information systems for construction and landscaping companles. The firm
has two officesone in Toronto and one in Vancouver. The firm classifies the direct costs of consulting Jobs as varlable costs. A
segmented contribution format income statement for the company's most recent year is given below.
Required:
By how much would the company's operating Income Increase If Vancouver Increased its sales by $ per year? Assume no
change in cost behaviour patterns.
a Refer to the original data. Assume that sales In Toronto Increase by $ 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 decimal places.
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