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has two offices-one in Chicago and one In Minneapolis. The firm classifies the direct costs of consulting Jobs as varlable costs. A contribution format segmented
has two offices-one in Chicago and one In Minneapolis. The firm classifies the direct costs of consulting Jobs as varlable costs. A contribution format segmented Income statement for the company's most recent year Is given: Exercise 7-17 (Algo) Working with a Segmented Income Statement [LO7-4] Assume that Minneapolis' sales by major market are: The company would like to InItlate an Intensive advertising campaign In one of the two market segments during the next month. The campalgn would cost $5,050. Marketing studies Indicate that such a campaign would Increase sales in the Medical market by $40,4 or Increase sales in the Dental market by $35,350. Required: 1. How much would the company's profits Increase (decrease) If It Implemented the advertising campalgn 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. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market
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