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Please help me solve this problem on Working with a Segmented Income Statement Exercise 6-17 Working with a Segmented Income Statement [LOG-4] Raner, Harris &

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Please help me solve this problem on Working with a Segmented Income Statement

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Exercise 6-17 Working with a Segmented Income Statement [LOG-4] Raner, Harris & Chan is a consulting rm that specializes in information systems for medical and dental clinics. The rm has two ofcesone in Chicago and one in Minneapolis. The rm classies the direct costs of consultingjobs as variable costs. A contribution format segmented income statement for the company's most recent year is given: Assume that Minneapolis\" sales by major market are: Market Minneapolis Medical Dental Sales $759,999 199% $599,999 199% $259,999 199% Variable expenses 459,999 69% 325,999 65% 125,999 59% Contribution margin 399,999 49% 175,999 35% 125,999 59% Traceable fixed expenses 99,999 12% 25,999 5% 65,999 26% Market segment margin 219,999 28% $159,999 39% $ 69,999 24% Common fixed expenses not traceable to markets 22,599 3% Office segment margin $187, 599 25% I 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 $87,500 or increase sales in the Dental market by $75,000. Required: 1. How much would the company's prots increase (decrease) if it implemented the advertising campaign in the Medical Market? 2. How much would the company's prots increase (decrease) 'rf 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 prots increase (decrease) if it implemented the advertising campaign in the Medical Market? Required 2 ) Required2 Required3 How much would the company's prots increase (decrease) if it implemented the advertising campaign in the Dental Market?

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