Assume that Minneapolis' sales by major market are: Market Minneapolis Medical Dental Book, Sales Variable expenses $330,000 100.00% $220,000 100.00% $110,000 100.00% 198,000 60.00% 140,800 64.00% 57,200 52.00% Contribution margin 132,000 40.00% 79,200 36.00% 52,800 48.00% mack Traceable fixed expenses. 36,300 11.00% 13,200 6.00% 23,100 1 21.00% Market segment margin 95,700 29.00% $ 66,000 30.00% $29,700 27.00% P erences Common fixed expenses not traceable to markets Office segment margin 16,500 $ 79,200 5.00% 24.00% 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 $5,500. Marketing studies indicate that such a campaign would increase sales in the Medical market by $44,000 or increase sales in the Dental market by $38,500. 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?