Question: Please help with the question. for the 2-a question make it as a table Middleton Associates is a consulting firm that specializes in information systems
Please help with the question. for the 2-a question make it as a table
Middleton Associates is a consulting firm that specializes in information systems for construction and landscaping companies. The firm has two officesone 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 companys most recent year is given below: Office Total Company Toronto Vancouver Sales $ 1,000,000 100.0 % $ 180,000 100 % $ 820,000 100 % Variable expenses 546,000 54.60 54,000 30 492,000 60 Contribution margin 454,000 45.40 126,000 70 328,000 40 Traceable fixed expenses 172,200 17.22 73,800 41 98,400 12 Office segment margin 281,800 28.18 $ 52,200 29 % $ 229,600 28 % Common fixed expenses not traceable to offices 102,500 10.25 Operating income $ 179,300 17.93 % Required: 1. By how much would the companys 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.) 2-b. This part of the question is not part of your Connect assignment.
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