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: Assume that Minneapolis' sales by major market are: Market Minneapolis $840,000 504,000 Medical $560,000 364,000 196,000 28,000 Dental Sales 100% 100% $280,000 140,000 140,000 72,800 100% Variable expenses Contribution margin Traceable fixed expenses 60% 65% 50% 336,000 100,800 40% 35t 50% 12 54 26t Market segment margin 235,200 $168,000 30 28% $ 67,200 24 Common fixed expenses not traceable to markets 25,200 38 Office segment margin $210,000 25t 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 $11,200. Marketing studies indicate that such a campaign would increase sales in the Medical market by $98,000 or increase sales in the Dental market by $84,000. 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? Required 2 Required 1 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 decrease Requird 2 Required 1 Required 3 How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Dental Market? Company's profits by