7 Graded Homework saved Required Information SB Exercise 7-16 through Exercise 7-17 (Algo) (The following information applies to the questions displayed below) Roner, Harris and 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: office Total company Chicago Minneapolis Sales $ 463,500 100% $ 154,500 100% $ 309,000 100% Variable expenses 231,750 50% 46, 350 30% 185,400 SOX contribution margin 231, 750 50% 108,150 123,600 40% Traceable fixed expenses 129,780 28% 80, 340 49,440 16% office segment margin 101,970 22% $ 27,810 18% $ 74,160 24% common fixed expenses not traceable to offices 64,890 14% Net operating income $ 37,080 tes 70% 52% 5% Exercise 7-17 (Algo) Working with a Segmented Income Statement (LO7.4) Assume that Minneapolis sales by major market are: Market Minneapolis Medical Dental Chapter 7 Graded Homework 5 1.78 points Required information Sales > 309, OU TOU $ 205,000 100% $ 109,000 100 Variable expenses 185,400 60% 131, 840 53,560 52% contribution margin 123,600 40% 74,160 36% 49,440 48X Traceable fixed expenses 33,990 11% 12,360 6% 21,630 21% office segnent margin 89,610 29% $ 61,800 30% $ 27,810 27% Common fixed expenses not traceable to offices 15,450 5% Net operating income $ 74,160 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 $5,50. Marketing studies indicate that such a compaign would increase sales in the Medical market by $41,20 or increase sales in the Dental market by $36,050. eBook Pret References 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? 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 by Chapter 7 Graded Homework 07 5 Required information 103,00 53, 560 49, 440 21,630 $ 27,810 > 309,000 100 185,400 50% 123,600 40% 33,990 11% 89,610 29% 15,450 5% $ 74,160 24 > 206, OU 1006 131,840 60X 74,160 36% 12,350 $ 51,800 30% 100 52x 45 21% 27% Sales variable expenses contribution nargin Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income 178 points -Print Wences 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 $5.350. Marketing studies indicate that such a campaign would increase sales in the Medical market by $41.200 or increase sales in the Dental market by $36,050 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Dental Market? Company's brots