equired Prepare a contribution format income statement segmented by geographic market. as requested by the president. The company's sales manager believes that sales in the Central geographic market could be increased by 15% if monthly advertising is increased by S25000, would you recom- mend the increased advertising? Show computations to support your answer FXERCISE 11-3 Working with a Segmented Income Statement ILO1 Middleton Associates is a consulting firm that specializes in information systems for con- struction and landscaping companies. The firm has two offices-one in Toronto and one in sifies 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 $750.000 1000% s0000 100% sanoo Toronto Vancouver Sales ariable expenses Contribution margin.. 405000 540 345000 460 45000 30 60 05000 70 240000 4 8000 52 . 168000 224 90000 5 Office segment margin Common fixed expenses 17100 236 52100 18%-25% not traceable to offices.120000 60 57000 76% Operating income 1 By how per year? Assume no change in cost behaviour patterns. er to the original data. Assume that sales in Toronto increase by $50000 next year and much would the companys operating income increase if Vancouver increased its sales by $75.000 sales in Vancouver remain unchanged. Assume no change in fixed costs Show both amounts and percentages. that hepare a new segmented income statement for the company using the above format fr the income statement you have prepared that the CM ratio remained unchanged at 70% (the segment argin ratio has changed. How do you explain the change in the segment margin ratio? with a Segmented Income Statement ILO1 same as in the above data) but that the the data in Exercise 11-3. Assume t rcise 11-3. Assume that Vancouver's sales by major market are as