Assignment AST:104-64 Astronomy of the system 21FA Required information The following information applies to the questions displayed below) 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 form 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 $ 474,000 1024 $ 162,000 1004 $ 312,000 100 Variable expenses 227.000 sex 48,600 301 187.2006 Contribution margin 237.000 50 113,400 700 124,800 409 Traceable fixed expenses 132,720 285 84,240 524 49.92016 office segment sorgin 104,280 22 $ 29, 160 189 $ 74,80 241 Connon fixed expenses net traceable to offices 65,360 14 Net operating income $ 37,920 Assume that Minneapolis sales by major market are Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Connon fixed expenses not traceable to offices Net operating income Minneapolis 5 312,00 2001 102,202 124,00 49.920 74,58 24 15,5 $59.0 19 Market Medical Dental $216.000 1009 $116.000 100 138,242 544 60320524 77.760 364 55,680 489 12/960 24, 360 211 301 $ 31,320 274 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 $9,000. Marketing studies indicate that such a campaign would increase sales in the Medical market by $48.000 or increase sales in the Dental market by 547,000 Required: 1. How much would the company's profits increase (decrease implemented the advertising campaign in the Medical Market? 2. How much would the company's profits increase decrease implemented the advertising campaign in the Dental Market? 3. In which of the markets would you recommend that the company focus is advertising campaign? Complete this question by entering your answers in the tabs below. Required Required 2 Required How much would the company's profits increase (decrease implemented the advertising campaign in the Medical Market? Cy's profis 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 pratos Required 1 Required 2 Required 3 In which of the markets would you recommend that the company focus its advertising campaign? Medical Dental (Required 2