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 Sales Variable expenses Contribution margin Market segment margin. Traceable fixed expenses Minneapolis $750,000 100% 450,000 60% 300,000 40% 90,000 128 210,000 288 Medical Dental $500,000 100% 325,000 658 175,000 358 $250,000 100% 125,000 50% 125,000 50% 25,000 58 65,000 268 $150,000 308 $ 60,000 248 Common fixed expenses not traceable to markets office segment margin 22,500 $187,500 38 259 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 $10,000. Marketing studies indicate that such a campaign would increase sales in the Medical market by $87,500 or increase sales in the Dental market by $75,000. 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How much would the comnanule nmfite increase (derreacal if it implemented the advertisinn ramnainn in the Medical Market? < Prev 5 of 6 Next >