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Assume that Minneapolis' sales by major market are: Minneapolis Sales 3 351,000 100.000 Variable expenses 210,600 60.000 Contribution margin 140.400 40.000 Traceable fixed expenses 38,610

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Assume that Minneapolis' sales by major market are: Minneapolis Sales 3 351,000 100.000 Variable expenses 210,600 60.000 Contribution margin 140.400 40.000 Traceable fixed expenses 38,610 11.000 Market segment margin 101,790 29.000 Common fixed expenses not traceable to markets 17.550 5.000 office segment margin $ 84,240 24.000 Market Medical Dental $ 234,000 100.000 $. 117,000 100.000 149,760 64.000 60.340 52.000 84,240 36.000 56,160 48.000 24.040 6.00 24,570 21.000 $ 70,200 30.000 $ 31,590 27.000 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 $5,850. Marketing studies indicate that such a campaign would increase sales in the Medical market by $46,800 or increase sales in the Dental market by $40.950. 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

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