\fExercise 7-16 Part 3 (Algo) Working with a Segmented Income Statement; Break-Even Analysis [LO7-4, LO7-5] 3. Assume that sales in Chicago increase by $56,000 next year and that sales in Minneapolis remain unchanged. Assume no change in fixed costs. a. Prepare a new segmented income statement for the company. (Round your intermediate calculations and percentage answers to 1 decimal place (1.e. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar.)) Segments Total Company Chicago Minneapolis Amount % Amount Amount 0 0.0 0 0.0 0.0 0 0.0 S 0 0.0 $ 0 0.0 0 0.0Required information Sales $ 336 , 000 100% $ 224 , 000 1008 $ 112, 000 1008 Variable expenses 201, 600 60% 143 , 360 648 58, 240 528 Contribution margin 134, 400 408 80, 640 368 53, 760 488 Traceable fixed expenses 36 , 960 118 13 , 440 68 23, 520 218 Office segment margin 97 , 440 298 $ 67, 200 308 $ 30, 240 27% Common fixed expenses not traceable to offices 16 , 800 Net operating income $ 80 , 640 24 8 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 $5,600. Marketing studies indicate that such a campaign would increase sales in the Medical market by $44,800 or increase sales in the Dental market by $39,200 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