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 Medical Dental Sales $870,000 Variable expenses Contribution margin 100% 522,000 60% 348,000 40% Traceable fixed expenses 104,400 Market segment margin 243,600 12% 28% $580,000 100% $290,000 100% 377,000 65% 145,000 50% 203,000 35% 145,000 50% 29,000 5% 75,400 26% $174,000 30% $ 69,600 248 Common fixed expenses not traceable to markets Office segment margin 26,100 $217,500 38 25% 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 $11,600. Marketing studies indicate that such a campaign would increase sales in the Medical market by $101,500 or increase sales in the Dental market by $87,000. 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?