Raner, Harris and Chan is a consulting firm specializing in information systems for medical and dental clinics. The firm has two offices-one 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 company's most recent year is given below. Office Total Company Chicago Minneapolis Sales $ 508,500 Variable expenses 254,250 100.00% 50.00% $ 169,500 Contribution margin 254,250 50.00% Traceable fixed expenses 142,380 28.00% 50,850 118,650 88,140 100.00% 30.00% $ 339,000 203,400 100.00% 60.00% 70.00% 135,600 40.00% 52.00% 54,240 16.00% Office segment margin 111,870 22.00% $ 30,510 18.00% $ 81,360 24.00% Common fixed expenses not traceable to offices 71,190 14.00% Net operating income $ 40,680 8.00% 3. Assume sales in Chicago increase by $56,500 next year and sales in Minneapolis and all fixed costs remain unchanged. a. Prepare a new segmented income statement for the company. Note: Round your intermediate calculations and percentage answers to 1 decimal place (i.e. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar.) Segments 3. Assume sales in Chicago increase by $56,500 next year and sales in Minneapolis and all fixed costs remain unchanged. a. Prepare a new segmented income statement for the company. Note: Round your intermediate calculations and percentage answers to 1 decimal place (i.e. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar.) Segments Total Company Chicago Minneapolis Amount % Amount % Amount % 0 0.0 0 0.0 0 0.0 $ $ 0 0.0 0 0.0 0.0 $ 0 0.0 Required information [The following information applies to the questions displayed below.] Raner, Harris and Chan is a consulting firm specializing in information systems for medical and dental clinics. The firm has two offices--one 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 company's most recent year is given below. Office Total Company Chicago Minneapolis Sales $ 508,500 Variable expenses 254,250 100.00% 50.00% $ 169,500 50,850 100.00% 30.00% $ 339,000 100.00% 203,400 60.00% Contribution margin 254,250 50.00% 118,650 70.00% 135,600 40.00% Traceable fixed expenses 142,380 28.00% 88,140 52.00% 54,240 16.00% office segment margin 111,870 22.00% $ 30,510 18.00% $ 81,360 24.00% Common fixed expenses not traceable to offices 71,190 14.00% Net operating income $ 40,680 8.00% S Assume Minneapolis's sales by major market are: Market Minneapolis Medical Dental Sales Variable expenses Contribution margin $ 339,000 203,400 100.00% 60.00% $ 226,000 144,640 135,600 40.00% 81,360 100.00% 64.00% 36.00% $ 113,000 100.00% 58,760 52.00% 54,240 48.00% Traceable fixed expenses 37,290 11.00% 13,560 Market segment margin 98,310 Common fixed expenses not traceable to markets 16,950 Office segment margin $ 81,360 29.00% 5.00% 24.00% $ 67,800 6.00% 30.00% 23,730 21.00% $ 30,510 27.00% The company is planning a $5,650 advertising campaign next month in either the Medical or Dental market. Marketing studies indicate this campaign would increase Medical market sales by $45,200 or Dental market sales by $39,550. Required: 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? 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 advertised in the Medical market? Company's profits by Required 1 Required 2 > 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? Complete this question by entering your answers in the tabs below. Required 1 Required quire Required 3 How much would the company's profits increase (decrease) if it advertised in the Dental market? Company's profits by < Required 1 Required 3 >