costs. A contribution format segmented income statement for the company's most recent year is given: Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income Office Minneapolis $ 342,000 100% 205,200 60% 136,800 40% Total Company $ 513,000 100% 256,500 50% 256,500 50% Chicago $171,000 100% 51,300 30% 119,700 70% 143,640 28% 88,920 52% 54,720 16% 22% 112,860 71,820 14% $ 30,780 18% $ 82,080 24% $ 41,040 8% 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 $ 342,000 100% 205,200 60% Medical Dental $ 228,000 100% $ 114,000 100% 145,920 64% 59,280 52% 136,800 40% 82,080 36% 54,720 48% 37,620 11 % 13,680 6% 23,940 21% 99,180 29% $ 68,400 30% $ 30,780 27% 17,100 5% $ 82,080 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 $5.700. Marketing studies indicate that such a campaign would increase sales in the Medical market by $45,600 or increase sales in the Dental market by $39,900. 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? Required information The company would like to initiate an intensive advertising campaign in one of the two market s campaign would cost $5,700. Marketing studies indicate that such a campaign would increase s or increase sales in the Dental market by $39,900. Required: 1. How much would the company's profits increase (decrease) if it implemented the advertising 2. How much would the company's profits increase (decrease) if it implemented the advertising 3. In which of the markets would you recommend that the company focus its advertising campai 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 campaig Company's profits by or increase sales in the Dental market by $39,900. Required: How much would the company's profits increase (decrease) if it implemented the advertising 2. How much would the company's profits increase (decrease) if it implemented the advertising B. In which of the markets would you recommend that the company focus its advertising campa 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 campa Company's profits by Common ixed expenses not traceable to offices Net operating income 57,144 90 $ 82,080 24 % The company would like to initiate an intensive advertising campaign in one of the two market s campaign would cost $5,700. Marketing studies indicate that such a campaign would increase s or increase sales in the Dental market by $39,900. Required: 1. How much would the company's profits increase (decrease) if it implemented the advertising ca 2. How much would the company's profits increase (decrease) if it implemented the advertising ca 3. In which of the markets would you recommend that the company focus its advertising campaigu Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 In which of the markets would you recommend that the company focus its advertising campaign? Medical Dental