Raner, Harris & 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: Office Total Company Chicago Minneapolis Sales $ 510,000 100% $ 180,000 100% $ 330,000 100% Variable expenses 255,000 50% 54,000 30% 198,000 60% Contribution margin 255,000 50% 126,000 70% 132,000 40% Traceable fixed expenses 142,800 28% 93,600 52% 52,800 16% Office segment margin 112,200 229 $ 32,400 18% $ 79,200 24% Common fixed expenses not traceable to offices 71,400 14% Net operating income $ 40,800 8% Assume that Minneapolis' sales by major market are: Sales Variable expenses Contribution margin Traceable fixed expenses Market segment margin Common fixed expenses not traceable to markets Office segment margin 36% Market Medical Dental $ 240,000 100% $ 140,000 100% 153,600 64% 72,800 52% 86,400 67,200 489 14,400 6% 29,400 21% $ 72,000 30% $ 37,800 27% Minneapolis $ 330,000 100% 198,000 60% 132,000 40% 52,800 16% 79,200 24% 15,000 5% $ 64,200 19% 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 $15,000. Marketing studies indicate that such a campaign would increase sales in the Medical market by $60,000 or increase sales in the Dental market by $65,000. 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