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 office segment margin Common fixed expenses not traceable to offices Operating income office Total Company Toronto Vancouver $750,000 100.00 $100,000 1001 $650,000 1000 420,000 56.00 30,000 30 390,000 60 330,000 44.00 70,000 70 260,000 40 156.000 20.80 52,000 52 104,000 16 174,000 23.20 $ 18,000 181 $156,000 240 117.000 15.60 $ 57,000 7.609 Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $74,000 per year? Assume no change in cost behaviour patterns. Increase in operating income $ 29,600 2-a. Refer to the original data. Assyme that sales in Toronto increase by $30,000 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 % $ 780,000 100.00 Toronto Amount Segments Vancouver Amount $ 780.000 100.00 Sales Variable expenses Contribution margin Traceable food expenses Office segment margin Common foxed expenses not traceable to segments Operating Income $ 780.000 100.00 $ 780,000 100.00