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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:
Required:
By how much would the company's operating income increase if Vancouver increased its sales by $91,000 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 $50,000 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.)
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