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all i need is required 1 and required 2 (The following information applies to the questions displayed below) Raner , Harris and Chan is a
all i need is required 1 and required 2
(The following information applies to the questions displayed below) Raner , 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 Sales Variable expenses Contribution margin Traceable fixed expenses office seguent margin Common fixed expenses not traceable to offices Net operating income Total Company $ 454,500 100% 227.250 sex 227,250 50% 127,260 28 99,990 22% 63,630 14% $36,360 office Chicago Minneapolis $ 151,500 100% $ 303,000 100% 45,450 30% 181,800 60% 106,650 70% 121,200 40% 78,780 52% 48,400 16% $ 27,270 18% $72,720 Assume that Minneapolis sales by major market are. 1 Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating Income Minneapolis $ 303,000 100% 181,800 6ex 122,200 40% 33,330 11% 87,870 29% 15,150 5 % $ 22,220 24 Market Medical Dental $ 202,000 100% $ 101,000 129,280 64 52 520 52 72,720 36% 48,480 48 12,120 6% 21,210 215 $ 60,600 $ 27,270 27% 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 $5.050 Marketing studies indicate that such a campaign would increase sales in the Medical market by S40,400 or increase sales in the Dental market by $35,350 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? 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 Required 2 > 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 profils Required 1 Required 3 > Step by Step Solution
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