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Please answer this Required: How much would the company's profits increase (decrease) if it advertised in the Medical market? How much would the company's profits
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- How much would the company's profits increase (decrease) if it advertised in the Medical market?
- How much would the company's profits increase (decrease) if it advertised in the Dental market?
- Should the company advertise in the Medical or Dental market?
Required information [The following information applies to the questions displayed below.] Raner, Harris and Chan is a consulting firm specializing in information systems for medical and dental clinics. The firm has two offices-one in Chicago and one in Minneapolis. It 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 below: Assume Minneapolis's sales by major market are: The company is planning a $5,000 advertising campaign next month in either the Medical or Dental market. Marketing studies indicat this campaign would increase Medical market sales by $40,000 or Dental market sales by $35,000
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