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	$	1,100,000	100.0	%	$	330,000	100	%	$	770,000	100	%
Variable expenses		616,000	56.00			115,500	35			500,500	65
Contribution margin		484,000	44.00			214,500	65			269,500	35
Traceable fixed expenses		308,000	28.00			184,800	56			123,200	16
Office segment margin		176,000	16.00		$	29,700	9	%	$	146,300	19	%
Common fixed expenses not traceable to offices		110,000	10.00
Operating income	$	66,000	6.00	%

Required: 1. By how much would the companys operating income increase if Vancouver increased its sales by $86,000 per year? Assume no change in cost behaviour patterns.

2-a. Refer to the original data. Assume that sales in Toronto increase by $150,000 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.)