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Please help me with the second part, I need to learn it for my final exam Middleton Associates is a consulting firm that specializes in
Please help me with the second part, I need to learn it for my final exam
Middleton Associates is a consulting firm that specializes in Information systems for construction and landscaping companies. The firm Thas 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. Office Total Company Toronto Vancouver $750,000 100.0% $100,000 100% $650,000 100% 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 18% $156,000 24% Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Operating income 117,000 15.60 $ 57,000 7.60x 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. s 29,800 Increase in operating income 2-a. Refer to the original data. Assume 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.) a Segments Vancouver Toronto Total Company Amount % Amount % Amount 0 0.00 0.00 0 $ 0 0.00 Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common foxed expenses not traceable to segments Operating income 0 0.00 $ 0 0.00 $ $ 0 0.00 $ 0 0.00Step by Step Solution
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