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3 Assume that Minneapolis' sales by major market are: 0.5 points Sales Variable expenses Contribution margin Traceable fixed expenses Market segment margin Common fixed expenses
3 Assume that Minneapolis' sales by major market are: 0.5 points Sales Variable expenses Contribution margin Traceable fixed expenses Market segment margin Common fixed expenses not traceable to markets Office segment margin Market Minneapolis Medical Dental $510,000 100% $340,000 100% $170,000 1008 306,000 60% 221,000 65% B5,000 50% 204,000 40% 119,000 35 85,000 501 61,200 12% 17,000 54 44,200 269 142,800 28% $102,000 302 $ 40,800 24% 15,300 $127,500 3% 25% 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 $6,800. Marketing studies indicate that such a campaign would increase sales in the Medical market by $59,500 or increase sales in the Dental market by $51,000. 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) if 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? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market? ( Company's $ profits 30,600 increase by 3 Assume that Minneapolis' sales by major market are: 0.5 points Sales Variable expenses Contribution margin Traceable fixed expenses Market segment margin Common fixed expenses not traceable to markets Office segment margin Market Minneapolis Medical Dental $510,000 100% $340,000 100% $170,000 1008 306,000 60% 221,000 65% B5,000 50% 204,000 40% 119,000 35 85,000 501 61,200 12% 17,000 54 44,200 269 142,800 28% $102,000 302 $ 40,800 24% 15,300 $127,500 3% 25% 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 $6,800. Marketing studies indicate that such a campaign would increase sales in the Medical market by $59,500 or increase sales in the Dental market by $51,000. 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) if 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? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Dental Market? ( Company's profits by $ 14,008 increase
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