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please help! Middleton Associates is a consulting firm that specializes in information systems for construction and landscaping companies. The firm. has two offices-one in Toronto
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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: Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $85,000 per year? Assume no change in cost behaviour patterns: 2.a. Refer to the original dota. Assume that sales in Toronto increase by $50,000 next year and that sales in Vancouver remain unchanged. Assume no change in foxed costs. Prepare a new segmented income statement for the company. (Round your percentage answers to 2 decimal places.) Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $85,000 per year? Assume no change in cost behaviour patterns. 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 flxed costs. Prepare a new segmented income statement for the company. (Round your percentage answers to 2 decimal places.) Step by Step Solution
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