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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 ottice segment margin Common Bixed expenses not traceable to offices Operating income office Total Company Toronto Vancouver $1,000,000 100.00 $160,000 1000 5140,000 1001 460,000 46.00 40,000 25 420,000 50 540,000 54.00 120.000 75 420,000 50 193,200 19.32 67,200 42 126,000 15 346,800 34.68 $ 52,800 $ $294,000 356 210,000 21.00 $ 136,800 13.680 Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $91,000 per year? Assume no change in cost behaviour patterns. Increme in operating income 2-a. Refer to the original data. Assume that sales in Toronto increase by $50,000 next year and that sales in Vancouver remain 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.) Total Company Amount Toronto Amount Begments Vancouver Amount

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