0 Required information The following information applies to the questions displayed below) Raner Harris & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two offices-one in Chicago and one in Minneapolis. The firm classifies the direct costs of consulting jobs as variable costs. A contribution format segmented income statement for the company's most recent year is given Sales Variable expenses Contribution margin Traceable fixed expenses Office segment sargin Connon fixed expenses not traceable to offices Net operating income Total Company $ 450,000 100% 225,000 Sex 225,000 50% 126,000 28% 99,000 22% 63,000 143 5 36,000 82 office Chicosto Minneapolis $ 150,00 100% $ 300,000 100% 45,000 30% 180,000 60% 105,000 70% 120,000 48% 78,000 52% 48,000 16% $ 27,000 18% $ 72,000 24% es Assume that Minneapolis' sales by major market are Sales Variable expenses Contribution margin Traceable fixed expenses Market segment margin Common fixed expenses not traceable to markets office segment margin Minneapolis $300,000 100% 100,00 60% 120,000 40K 33.000 118 87.000 15,000 5% $ 72,000 24% Market Medical Dental $ 200,000 100% $100,000 100% 128.000 64% 52,000 52% 72.000 48,000 48% 12.000 6% 21.000 21% $ 60,000 $ 27,000 27% 29% The company would like to initiate an intensive advertising campaign in one of the two market segments during the next month. The campaign would cost $5,000 Marketing studies indicate that such a campaign would increase sales in the Medical market by $40,000 or increase sales in the Dental market by $35,000 Required: 1. How much would the company's profits increase (decrease if it implemented the advertising campaign in the Medical Market? 2. How much would the company's profits increase (decrease) ir it implemented the advertising campaign in the Dental Market? 3. In which of the markets would you recommend that the company focus its advertising campaign