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	$	911,000	100.0	%	$	161,000	100	%	$	750,000	100	%
Variable expenses		452,750	49.70			40,250	25			412,500	55
Contribution margin		458,250	50.30			120,750	75			337,500	45
Traceable fixed expenses		172,110	18.89			82,110	51			90,000	12
Office segment margin		286,140	31.41		$	38,640	24	%	$	247,500	33	%
Common fixed expenses not traceable to offices		180,000	19.76
Operating income	$	106,140	11.65	%

Required: 1. By how much would the companys operating income increase if Vancouver increased its sales by $84,000 per year? Assume no change in cost behaviour patterns.

2-a. Refer to the original data. Assume that sales in Toronto increase by $100,000 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.)