Q6

Cherrywer 6 Part 3 Rane Harris & Chanis a consulting firm that specializes in information wystems for medical and dental inks. The firm has two offices one in Chicago and one in Minneapolis. The firm classes the direct costs of communis as variable costs. A contribution format segmented income statement for the company's most recent year is given offi total ELIGE 1456.000 1000 15.00 1948 1103.60 Well 220.000 101 45,00 I. Contribution 220,000 Son 107, 1000 12,0 Traceable ad expense 12 2012 41,40 141 Office et margin 108,20 20 . 7,90 20 Com apenas not trueshte te aties 4), 140 Loan 13.680 2.85 po 10 Assume that Minneapolis sales by major market ti MER 103,010 100 TON 4 Tales werable experts Contribution margin Trackle the expens of argin Costrets of Newertin 304.050 10.30 77,70 12.40 121.210 601 48.410142 73.730 301 Det 104,000 100 BOLSAS 6,90 23. 211 821,001274 300 57.73 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 $6.000. 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 538.000 Required 1. How much would the company's profits increase decrease implemented the advertising campaign in the Medical Market 2. How much would the company's profits ince decrease implemented the advertising campaign in the Dental Market? 3. In which of the markets would you recommend that the company focus its advertising campaign? Prey 71 Next > Cherrywer 6 Part 3 Rane Harris & Chanis a consulting firm that specializes in information wystems for medical and dental inks. The firm has two offices one in Chicago and one in Minneapolis. The firm classes the direct costs of communis as variable costs. A contribution format segmented income statement for the company's most recent year is given offi total ELIGE 1456.000 1000 15.00 1948 1103.60 Well 220.000 101 45,00 I. Contribution 220,000 Son 107, 1000 12,0 Traceable ad expense 12 2012 41,40 141 Office et margin 108,20 20 . 7,90 20 Com apenas not trueshte te aties 4), 140 Loan 13.680 2.85 po 10 Assume that Minneapolis sales by major market ti MER 103,010 100 TON 4 Tales werable experts Contribution margin Trackle the expens of argin Costrets of Newertin 304.050 10.30 77,70 12.40 121.210 601 48.410142 73.730 301 Det 104,000 100 BOLSAS 6,90 23. 211 821,001274 300 57.73 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 $6.000. 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 538.000 Required 1. How much would the company's profits increase decrease implemented the advertising campaign in the Medical Market 2. How much would the company's profits ince decrease implemented the advertising campaign in the Dental Market? 3. In which of the markets would you recommend that the company focus its advertising campaign? Prey 71 Next >