Exercise 11-3 Working with a Segmented Income Statement [LO1] 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: Sales Variable expenses Traceable fixed expenses Contribution margin Office segment margin Common fixed expenses not traceable to offices Operating income Office Total Company Toronto Vancouver $750,000 100.0% $120,000 100% 414,000 55.20 36,000 30 336,000 44.80 84,000 70 147,000 19.60 58,800 49 $630,000 100% 378,000 60 252,000 40 88,200 14 189,000 25.20 $ 25,200 21% $163,800 26% 147,000 19.60 $ 42,000 5.60% Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $72,000 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 $90,000 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 Traceable fixed expenses Segments Total Company Toronto Vancouver Amount % Amount % Amount % $ 0 0.00 0 0.00 0 0.00 Office segment margin $ 0 0.00 $ 0 0.00 $ 0 0.00 Common fixed expenses not traceable to segments Operating income $ 0 0.00