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Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Operating income Total Company Toronto Office Vancouver
Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Operating income Total Company Toronto Office Vancouver $911,000 100.0% $161,000 100% $750,000 100% 452,750 49.70 458,250 50.30 172,110 18.89 40,250 25 120,750 75 82,110 51 412,500 55 337,500 45 90,000 12 286,140 31.41 $ 38,640 24% $247,500 33% 180,000 19.76 $106,140 11.65% Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $84,000 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 $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.) Sales Variable expenses Contribution margin Segments Total Company Toronto Vancouver Amount % Amount % Amount % $ 0 0.00 0 0.00 0 0.00 Traceable fixed expenses Office segment margin $ 0 0.00 $ 0 0.00 $ 0 0.00 Common fixed expenses not traceable to segments Operating income $ 0 0.00
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