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: Total Company $ 800,000 100.008 444,000 55.50 Office Toronto Vancouver $ 120,000 1008 $ 680,000 100% 36,000 30 408,000 60 Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin 356,000 129,200 44.50 16.15 84,000 61,200 70 51 272,000 68,000 40 10 226,800 28.35 $ 22,800 198 $ 204,000 30% 102,000 12.75 Common fixed expenses not traceable to offices Operating income $ 124,800 15.60% Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $77,000 per year? Assume no change in cost behaviour patterns. Increase in operating income $ 30,800 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.) Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to segments Operating income Segments Total Company Toronto Vancouver Amount % Amount Amount % $ 850,000 100.00 $ 170,000 100.00 $ 680,000 100.00 459,000 54.00 51,000 30.00 408,000 60.00 $ 391,000 46.00 119,000 70.00 272,000 40.00 129,200 61,200 68,000 $ 261,800 46.00 $ 57,800 70.00 $ 204,000 40.00 $ 261,800 46.00