Raner, Harris and Chan is a consulting firm that specializes in Information systems for medical and dental clinics. The firm has two offices-one in Chicago and one in Minneapolis. The firm 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: 500 Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Common fixed expenses not traceable to office Net operating income 600 400 Total Company $ 517,500 1001 258,750 258,750 50 144,900 2B1 113,850 220 72,450 $ 41,400 88 office Chicago Minneapolis $ 172,500 1001 $ 345,000 1001 51.750 304 207.000 120,750 701 138,000 89,700 520 55,200 160 $ 31,050 18 $ 82,800 248 Assume that Minneapolis' sales by major market are: Market Sales Minneapolis Medical Dental $ 345,000 1000 $ 230,000 1001 $ 115,000 1001 Variable expenses 207,000 600 147,200 648 Contribution margin 59,800 528 138,000 400 Traceable fixed expenses 82,800 361 55,200 37,950 114 13,800 24,150 210 office segment margin 100.050 291 $ 69,000 308 $ 31,050 278 Common fixed expenses not traceable to officon 17,250 Net operating income $ 82,800 24 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 $5.750. Marketing studies indicate that such a campaign would increase sales in the Medical market by $46,000 or increase sales in the Dental market by $40,250, Required: 1. How much would the company's profits increase (decrease) If it implemented the advertising campaign in the Medical Market? 2. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Dental Market? 3. In which of the markets would you recommend that the company focus its advertising campaign