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	$ 486,000	100.00%	$ 162,000	100.00%	$ 324,000	100.00%
Variable expenses	243,000	50.00%	48,600	30.00%	194,400	60.00%
Contribution margin	243,000	50.00%	113,400	70.00%	129,600	40.00%
Traceable fixed expenses	136,080	28.00%	84,240	52.00%	51,840	16.00%
Office segment margin	106,920	22.00%	$ 29,160	18.00%	$ 77,760	24.00%
Common fixed expenses not traceable to offices	68,040	14.00%
Net operating income	$ 38,880	8.00%

Assume Minneapoliss sales by major market are:

	Minneapolis	Market
Medical	Dental
Sales	$ 324,000	100.00%	$ 216,000	100.00%	$ 108,000	100.00%
Variable expenses	194,400	60.00%	138,240	64.00%	56,160	52.00%
Contribution margin	129,600	40.00%	77,760	36.00%	51,840	48.00%
Traceable fixed expenses	35,640	11.00%	12,960	6.00%	22,680	21.00%
Market segment margin	93,960	29.00%	$ 64,800	30.00%	$ 29,160	27.00%
Common fixed expenses not traceable to markets	16,200	5.00%
Office segment margin	$ 77,760	24.00%

The company is planning a $5,400 advertising campaign next month in either the Medical or Dental market. Marketing studies indicate this campaign would increase Medical market sales by $43,200 or Dental market sales by $37,800.

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?