Middleton Assoclates is a consulting firm that speclalizes 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 varlable costs. A segmented contribution format Income statement for the company's most recent

year is glven below.

Required:

By how much would the company's operating income increase If Vancouver Increased its sales by $$86,000$ per year?

Assume no change in cost behaviour patterns.

Increase in operating

income

$2-$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.$)$

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