Exercise 6-17 Working with a Segmented Income Statement (LO6-4) 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: Assume that Minneapolis' sales by major market are: Sales Variable expenses Contribution margin Traceable fixed expenses Market segment margin Common fixed expenses not traceable to markets office segment margin Market Minneapolis Medical Dental $870.000 1001 $500,000 1001 $290,000 1000 522,000 608 377,000 658 145,000 500 348,000 408 203,000 358 145,000 500 104,400 126 29,000 58 75,400 261 243,600 281 $174,000 308 $ 69,600 241 26,100 $217,500 38 251 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 $11,600. Marketing studies indicate that such a campaign would increase sales in the Medical market by $101.500 or increase sales in the Dental market by $87,000. 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? J. WC e moet would you tel l lidt le company TOCUS IS dovertising 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 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 (Required 2