rmation has been recorded for the previous year Variable expenses (as a % of sales) Traceable fixed expenses Average Operating Assets Required Rate of Return Toronto 150,000 3096 78,000 --- 1,200,000 10% 11% Vancouver 600,000 6096 90.000 2,500,000 1596 ---- --- ROI 2296 The company's total fixed costs are $288,000 1. Complete the segment income statement below: Total Company Toronto Vancouver Sales Variable expenses Contribution margin Segment margin Operating income 2. Management would like to increase volumes in Toronto and thus are suggesting an advertising campaign For a cost of $15,000, management can implement a marketing campaign that would increase sales by $45.000. Given that Toronto has a 70% contribution margin how much would overall operating income increase? incremental sales incremental operating income Should the company move forward with this advertising campaign? 2. Each city has been offered an project that has a ROI of 17% which city will accept this project? Refer to the ROI and RI figures from the above chart If they are evaluated on ROI? 21f they are RI