Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

plz help 5 Raner, Harris and Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two

plz help
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
5 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 Total Company Chicago Sales Minneapolis $312,000 100% Variable expenses Contribution margin 17:09 $468,000 100% $156,000 100% 234,000 50 46,000 30% 109,200 70% 81,120 52% $20,000 20% Traceable fixed expenses 234,000 50% 131,040 206 102,960 22% 5,520 149 187,200 60% 124,800 40% 49,920 16% $74,880 241 ad office segment margin Common fixed expenses not traceable to offices. Net operating income $ 37,440 84 K Exercise 7-17 (Algo) Working with a Segmented Income Statement [LO7-4] Assume that Minneapolis' sales by major market are: Medical Dental $ 200,000 100% Sales Variable expenses Contribution margin Minneapolis $312,000 1008 187,200 60% 124,800 40% 34,320 114 90,400 29% 15,600 54 $74,880 24 % $104,000 100% 54,000 524 49,920 40% 21,840 133,120 64% 74,880 36% 12,400 64 $ 62,400 30% 224 Traceable fixed expensen $ 28,000 27% office segment margin Common fixed expenses not traceable to offices Net operating income 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 $5,200. Marketing studies indicate that such a campaign would increase sales in the Medical market by $41,600 or increase sales in the Dental market by $36,400. Required: How much would the commande nonfite increara Idorrascal if it implemented the auarticinn ramnainn in the Medical Mart? Market Check my 5 Required information Market Sales Minneapolis $312,000 100% Medical Dental $200,000 100% $ 104,000 100% Variable expenses Contribution margin 187,200 60% 40% 80236.54 644 368 64 Traceable fixed expenses 133,120 74,880 12,400 30% 124,900 34,320 116 90,480 29% 15,600 5% $ 74,880 24 54,080 528 49,920 481 21,840 210 $ 28,000 278 office segment margin $ 62,400 Skipped Common fixed expenses not traceable to offices Net operating income 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 $5,200. Marketing studies indicate that such a campaign would increase sales in the Medical market by $41,600 or increase sales in the Dental market by $36,400. eBook Required: Print 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? References 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 Medical Market? Company's profits 1.78 points *www EUVE Contribution margin Traceable fixed expenses 187,200 60% 124,800 40% 34,320 114 90,480 291 15,600 54 133,120 64% 74,880 361 12,480 69 30% 54,080 52% 49,920 40% 21,840 219 $ 28,080 27% office segment margin $ 62,400 Common fixed expenses not traceable to offices Net operating income $ 74,880 24 1 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 $5,200. Marketing studies indicate that such a campaign would increase sales in the Medical market by $41,600 or increase sales in the Dental market by $36,400. 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 31 How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Dental Market? Company's profits by 43 $74,880 24 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 $5,200. Marketing studies indicate that such a campaign would increase sales in the Medical market by $41,600 or increase sales in the Dental market by $36,400. 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. -ces Required 1 Required 2 Required In which of the markets would you recommend that the company focus its advertising campaign? Medical Dental

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Payroll Accounting 2022

Authors: Bernard J. Bieg, Judith A. Toland

32nd Edition

0357518756, 9780357518755

More Books

Students also viewed these Accounting questions