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:

Office

Total Company Toronto Vancouver

Sales $ $911,000100\mathrm{.}0\%$ $ $161,000100\%$ $ $750,000100\%$

Variable expenses $452,75049\mathrm{.}7040,25025412,50055$

Contribution margin $458,25050\mathrm{.}30120,75075337,50045$

Traceable fixed expenses $172,11018\mathrm{.}8982,1105190,00012$

Office segment margin $286,14031\mathrm{.}41$ $ $38,64024\%$ $ $247,50033\%$

Common fixed expenses

not traceable to offices $180,00019\mathrm{.}76$

Operating income $ $106,14011\mathrm{.}65\%$

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.

$2-$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.$)$