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 Minneapolls. 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: Office Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income Total Company Chicago $ 454,500 100% 227,250 227,250 sex 127,260 28% sex $ 151,500 45,450 106,050 76% 100% Minneapolis $ 303,000 100% 30 181,800 60% 121,200 40% 78,788 99,990 22% $ 27,270 52% 18% 48,480 16% $ 72,720 24% 63,630 14% $ 36,360 8% Exercise 7-17 (Algo) Working with a Segmented Income Statement [LO7-4] Assume that Minneapolis' sales by major market are: Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income Market Minneapolis $ 303,000 100% Medical $202,000 Dental 100% $ 101,000 181,800 60% 129,280 64% 52,520 100% 52% 121,200 40% 72,720 36% 48,480 48% 33,330 11% 12,120 6% 21,210 21% 87,870 29% 15,150 $ 60,600 et $27,270 27% $ 72,720 24 X 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 $5,050. Marketing studies indicate that such a campaign would increase sales in the Medical market by $40,400 or increase sales in the Dental market by $35,350 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? Complete this question by entering your answers in the tabs below. Required 1 Required 21 Required 3 How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market? Company's profits by Required 2>