Middleton Associates is a consulting rm that specializes in information systems for construction and landscaping companies. The rm has two ofcesone in Toronto and one in Vancouver. The rm classies the direct costs of consultingjobs as variable costs. A segmented contribution format income statement for the company's most recent year is given below: Office Total Company Toronto Vacuum Sales $800,000 100.0% $220,000 100% $660,000 100% Variable expenses 374,000 42.50 44,000 20 330,000 50 Contribution margin 506,000 57.50 176,000 80 330,000 50 haceehle fixed expenses 237,600 27.00 118,000 54 118,000 18 Office segment margin 260,400 30.50 5 57-200 26' 5211.200 32% Common fixed expenses not traceable to offices 99,000 11.25 Operating income $169,400 19.25% Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $75,000 per year? Assume no change in cost behaviour patterns. 2-3. Refer to the original data. Assume that sales in Toronto increase by $110,000 next year and that sales in Vancouver remain unchanged. Assume no change in xed costs. Prepare a new segmented income statement for the company. [Round your percentage answers to 2 decimal places.) 2-b. This part of the question is not part of your Connect assignment