Raner, Harris and Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two officesone 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 companys most recent year is given:

	Total Company		Office
			Chicago		Minneapolis
Sales	$ 459,000	100.00%	$ 153,000	100.00%	$ 306,000	100.00%
Variable expenses	229,500	50.00%	45,900	30.00%	183,600	60.00%
Contribution margin	229,500	50.00%	107,100	70.00%	122,400	40.00%
Traceable fixed expenses	128,520	28.00%	79,560	52.00%	48,960	16.00%
Office segment margin	100,980	22.00%	$ 27,540	18.00%	$ 73,440	24.00%
Common fixed expenses not traceable to offices	64,260	14.00%
Net operating income	$ 36,720	8.00%

Assume that Minneapolis sales by major market are:

	Minneapolis		Market
			Medical		Dental
Sales	$ 306,000	100.00%	$ 204,000	100.00%	$ 102,000	100.00%
Variable expenses	183,600	60.00%	130,560	64.00%	53,040	52.00%
Contribution margin	122,400	40.00%	73,440	36.00%	48,960	48.00%
Traceable fixed expenses	33,660	11.00%	12,240	6.00%	21,420	21.00%
Market segment margin	88,740	29.00%	$ 61,200	30.00%	$ 27,540	27.00%
Common fixed expenses not traceable to markets	15,300	5.00%
Office segment margin	$ 73,440	24.00%

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 $5,100. Marketing studies indicate that such a campaign would increase sales in the Medical market by $40,800 or increase sales in the Dental market by $35,700.

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?