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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 Office Total Company Toronto Vancouver Sales $1,650,00 100.0% $150,000 100 5900,000 180 Variable expenses 585,000 55.71 45,000 540,000 be Contribution margin 465,000 44.29 185,ce 70 360,000 se Traceable led expenses 153.000 14.57 63,00 42 90,eee 10 Office segment margin 312,000 29.71 $ 42,000 28 $270,000 305 Common Fixed expenses not traceable to offices 206000 10.29 Operating income 5 204,000 19.43 Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $94,000 per year? Assume no change in cost behaviour patterns Increase in opening income 2. Refer to the original data. Assume that sales in Toronto increase by 575.000 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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