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 Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Operating income office Total Company Toronto Vancouver $1,000,000 100.0% $140,000 100% $860,000 100% 565,000 56.50 49,000 35 516,000 60 435,000 43.50 91,000 65 344,000 40 197,800 19.78 60,200 43 137,600 16 237,200 23.72 $ 30,800 22% $206,400 24% 107,500 10.75 129,700 12.97% $ Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $92,000 per year? Assume no change in cost behaviour patterns. Increase in operating income Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $92,000 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 $75,000 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.) Toronto Total Company Amount % Segments Vancouver % Amount % Amount $ 0 0.00 0 0.00 0 0.00 $ 0 0.00 $ 0 0.00 $ 0 0.00 $ 0 0.00