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:

Exercise $6-17($Algo$)$ Working with a Segmented Income Statement $[$LO$6-4]$

Assume Minneapolis's sales by major market are:

The company is planning a $$5,800$ advertising campaign next month in either the Medical or Dental market. Marketing studies indicate

this campaign would increase Medical market sales by $$46,400$ or Dental market sales by $$40,600.$

Required:

How much would the company's profits increase $($decrease$)$ if it advertised in the Medical market?

How much would the company's profits increase $($decrease$)$ if it advertised in the Dental market?

Should the company advertise in the Medical or Dental market?

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