1-a. Calculate the increased segment margin for both Medical and Dental.

1-b. In which markets would you recommend the company focus its advertising campaign? Medical or Dental?

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. Assume that Minneapolis' sales by major market are Market Minneapolis Medical Dental Sales $300,000 100% $200,000 100% $100,000 100% 180,000 60% 128,000 64% 52,000 52% Variable expenses 120,000 40% 33,000 11% Contribution margin 72,000 36% 48,000 48% 12,000 6% 21,000 21% Traceable fixed expenses Market segment margin Common fixed expenses 87,000 29% $60,000 30% $27,000 27% not traceable to markets 15,000 5% Office segment margin $72,000 24% 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-a. Calculate the increased segment margin Medical Dental Increased segment margin 1-b. In which of the markets would you recommend that the company focus its advertising campaign? Medical O Dental