Check my we 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 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 Total Company Chicago Minneapolis Sales $ 468,000 1089 Variable expenses $ 159,000 1801 $ 389,000 1004 234,000 504 47,700 30 Contribution margin 185,400 604 234,000 504 111,300 789 Traceable fixed expenses 123,600 131,040 284 82,680 52 49,440 164 Office segment margin 102,960 229 $ 28,620 188 $ 74,160 245 Common fixed expenses not traceable to offices 65,520 144 Net operating income $ 37,440 89 409 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 Minneapolis $ 309,000 1005 185,400 601 123,600 400 49,440 165 74,160 249 15,000 59 5 59,160 19 Market Medical Dental $ 212,000 1005 $ 112,000 1089 135,680 649 58,240 52 76,320 365 53,760 485 12,720 69 23, 520 211 $ 63,600 309 $ 30,240 274 The company would like to initiate an intensive advertising campaign in one of the two market segments during the next month. The 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 $8,000. Marketing studies indicate that such a campaign would increase sales in the Medical market by $46,000 or increase sales in the Dental market by $44,000 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) 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. Required 1 Required 2 Required 3 How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market? Company's profits by Required 2 > Complete this question by entering your answers in the tabs below. 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 profits by
