Raner, Harris and Chan is a consulting firm specializing in information systems for medical and dental clinics. The firm has two officesone 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 companys most recent year is given below:

	Total Company	Office
Chicago	Minneapolis
Sales	$ 468,000	100.00%	$ 156,000	100.00%	$ 312,000	100.00%
Variable expenses	234,000	50.00%	46,800	30.00%	187,200	60.00%
Contribution margin	234,000	50.00%	109,200	70.00%	124,800	40.00%
Traceable fixed expenses	131,040	28.00%	81,120	52.00%	49,920	16.00%
Office segment margin	102,960	22.00%	$ 28,080	18.00%	$ 74,880	24.00%
Common fixed expenses not traceable to offices	65,520	14.00%
Net operating income	$ 37,440	8.00%

Assume Minneapoliss sales by major market are:

	Minneapolis	Market
Medical	Dental
Sales	$ 312,000	100.00%	$ 208,000	100.00%	$ 104,000	100.00%
Variable expenses	187,200	60.00%	133,120	64.00%	54,080	52.00%
Contribution margin	124,800	40.00%	74,880	36.00%	49,920	48.00%
Traceable fixed expenses	34,320	11.00%	12,480	6.00%	21,840	21.00%
Market segment margin	90,480	29.00%	$ 62,400	30.00%	$ 28,080	27.00%
Common fixed expenses not traceable to markets	15,600	5.00%
Office segment margin	$ 74,880	24.00%

The company is planning a $5,200 advertising campaign next month in either the Medical or Dental market. Marketing studies indicate this campaign would increase Medical market sales by $41,600 or Dental market sales by $36,400.

Required:

1. How much would the company's profits increase (decrease) if it advertised in the Medical market?
2. How much would the company's profits increase (decrease) if it advertised in the Dental market?
3. Should the company advertise in the Medical or Dental market?