ces [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: Office Sales Total Company Chicago Hinneapolis $ 468,000 100% 234,000 506 $ 156,000 100% $ 312,000 46,800 30% 100% 187,200 60% 234,000 50% 109,200 70% 124,800 40% 131,040 281 $ 28,080 81,120 52 18 49,920 261 $ 74,880 241 Variable expenses Contribution margin Traceable fixed expenses: office segment margin. Common fixed expenses not traceable to offices Net operating income 102,960 221 65,520 141 $ 37,440 81 Exercise 7-17 (Algo) Working with a Segmented Income Statement [LO7-4] Assume that Minneapolis' sales by major market are: Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income Market Minneapolis Medical Dental $ 312,000 100% 187,200 608 124,800 40% 34,320 116 90,480 298 15,600 5 $208,000 100% 133,120 641 $ 104,000 100% 54,080 528 74,880 368 49,920 486 12,480 61 21,840 219 $ 62,400 30% $28,080 27 $ 74,880 24 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 $5,200. Marketing studies indicate that such a campaign would increase sales in the Medical market by $41,600 or increase sales in the Dental market by $36,400. 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? Complete this question by entering your answers in the tabs below.