Solve the following:

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 I:l'oronto Vancouver Sales $ 1,000,000100-00' $ 130,000 100% S 320,000 100% Variable expenses 546,000 54.60 54,000 30 492,000 60 Contribution margin 454,000 45.40 126,000 70 323,000 40 Traceable fixed expenses 172,200 17.22 73,300 41 93,400 12 Office segment margin 231,300 23.13 $ 52,200 29% $ 229.600 23% Common fixed expenses not traceable to offices 102,500 10.25 Operating income $ 179,300 17.93% Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $90,000 per year? Assume no change in cost behaviour patterns. 2-a. Refer to the original data. Assume that sales in Toronto increase by $25,000 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.)