6 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: 10 points Assume that Minneapolis' sales by major market are Market Minneapolis Medical Dental Sales Variable expenses Contribution margin Traceable fixed expenses $690,000 1009 $460,000 1009 $230,000 1009 414,000 609 299,000 658 115,000 509 276,000 40% 161,000 35% 115,000 50% 59,800 26% 193,200 28 $138,000 30 55,200 248 eBook 82,800 129 23,000 58 Print nt margin Common fixed expenses not traceable to markets 20,700 34 References Office segment margin $172,500 258 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 $9,200. Marketing studies indicate that such a campaign would increase sales in the Medical market by $80,500 or increase sales in the Dental market by $69,000 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