HW 6 Saved 10 points 1 Book Print References Required information [The following information applies to the questions displayed below] Raner, Harris and 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 Sales Total Company $472,500 100.00% Chicago Minneapolis $157,500 100.00% $315,000 100.00% Variable expenses 236,250 50.00% 47,250 30.00% 189,000 60.00% Contribution margin 236,250 50.00% 110,250 70.00% 126,000 40.00% Traceable fixed expenses 132,300 28.00% #1,900 52.00% 50,400) 16.00% office segment margin 103,950 22.001 $28,350 18.00% $75,600 24.00% Common fixed expenses not traceable to offices 46,150 14.00% Net operating income $37,000 8.00% Assume that Minneapolis' sales by major market are: Help Save & E Che Assume that Minneapolis' sales by major market are: Market Minneapolis Medical Dental ints Sales Variable expenses Contribution margin Traceable fixed expenses $315,000 100.00% $ 210,000 100.00% $ 105,000 100.00% 189,000 60.00% 134,400 64.00% 54,600 52.00% 126,000 40.00% 75,600 36.00% 50,400 48.00% eBook 34,650 11.00% 12,600 6.00% 22,050 21.00 Market segment margin 91,350 29.00% $ 63,000 30.00% $ 28,350 27.00% Print Common fixed expenses hot traceable to markets References office segnent margin 15,750 $ 75,600 5.00% 24.00% 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 $5,250. Marketing studies indicate that such a campaign would increase sales in the Medical market by $42,000 or increase sales in the Dental market by $36,750. 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