Middleton Associates is a consulting firm that specializes in information systems for construction and landscaping...
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Accounting
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 sargin Traceable fixed expenses office segment margin Common fixed expenses not traceable to office Operating income Office Total Company Toronto Vancouver 51,000,000 100.0 $280,000 1001 $220,000 1008 515,000 51.50 84,000 30 432,000 60 464,000 48.40 196,000 70 288,000 40 259,200 25.92 151,200 50 100,000 15 224,800 22.48 $ 44,00 166 $180,000 258 81.000 8.10 $ 143,800 14.38 Required: 1. By how much would the company's operating income increase if Vancouver Increased its sales by $81.000 per year? Assumo no change in cost behaviour patterns Increase in operating incomo 2-a. Refer to the original data. Assume that sales in Toronto increase by $80,000 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


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