C Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Conmon fixed expenses not traceable to offices Net operating income Totat company $ 486,000 1004 243,000 50 243,000 50 136,08 28 106,920 224 68,040 145 $ 38,880 BN Chicago $ 168,000 1009 50,400 305 117,6ee 705 87,360 524 $ 30,240 185 Minneapons $ 318,000 1004 190,800 605 127,200 40 50,880 164 $ 76,320 249 2:37 501 361 27 ne Assume that Minneapolls sales by major market are: Market Minneapolis Medical Dental Sales $ 318,000 2001 $ 224,000 100 $ 124,000 1004 Variable expenses 190.800 243,360 649 64,480 52 Contribution margin 127,200 40 80,640 59,520 489 Traceable fixed expenses 50,00 165 13,440 64 26,040 215 office segment margin 26,320 240 $ 67,200 301 $ 33, 480 Common fixed expenses not traceable to offices 15, 2005 Net operating income $ 61,320 19 The company would like to initiate an intensivt advertising campaign in one of the two market begments during the next month. The campaign would cost $11,000. Marketing studies indicate that such a campaign would incronse sales in the Medical market by $52,000 or increase soles in the Dental market by $53,000 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) it implemented the advertising campaign in the Dental Market? 2. In which of the markets would you recommend that the company focus its advertising campaign