please help and show calculations
Required information The following information applies to the questions displayed below) 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 Office Total Company Chicago Minneapolis Sales $ 480,000 1000 $ 165,000 1009 $ 315,000 1000 Variable expenses 240,000 501 49,500 300 189.000 608 Contribution margin 240,000 500 115,500 700 126,000 400 Traceable fixed expenses 134,400 280 85,800 52 50,400 16 ofte segment margin 105,600 220 $ 29,900 180 675,600 Connon tixed expenses not traceable to offices 67,200 Het operating income $38.400 es 240 Assume that Minneapolist sales by major market are Viable expenses Contribution Minneapolis $315.000 1008 102.000 608 126,000 40 50.400 Market Medical Dental $ 220,000 100: 120.000 TOOS 140.00 601 62.400 79,200 57,600 13.200 60 25.200 210 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 marketa ottice wegnent margin Minneapolis $ 315,000 1001 189,000 608 126,000 400 50,400 168 75,600 240 15,000 50 $ 60,600 198 Market Medical Dental $ 220,000 1008 $ 120,000 1008 140,800 646 62,400 528 79,200 361 57,600 488 13,200 68 25, 200 210 $ 66,000 300 $ 32,400 276 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 $10,000, Marketing studies indicate that such a campaign would increase sales in the Medical market by $50,000 or increase sales in the Dental market by $50,000 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? ine company would like to initiate an intensive advertising campaign in one of the two market segments during the next month. ine campaign would cost $10,000. Marketing studies indicate that such a campaign would increase sales in the Medical market by $50,000 or increase sales in the Dental market by $50,000, 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? 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) ir it implemented the advertising campaign in the Medical Market? Company's profits by FES Required 2 > ine company would like to initiate an intensive advertising campaign in one of the two market segments auring the next month. i ne campalgn would cost $10,000. Marketing studies indicate that such a campaign would increase sales in the Medical market by $50,000 or increase sales in the Dental market by $50,000. 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? 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 proti by Required information ine company would like to initiate an intensive advertising campaign in one of the two market segments auring the next montnine campaign would cost $10,000. Marketing studies indicate that such a campaign would increase sales in the Medical market by $50,000 or increase sales in the Dental market by $50,000, 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? 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
