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 $570 , 000 1008 $380, 000 100* $190 , 000 1008 Variable expenses 342 , 000 608 247 , 000 658 95, 000 508 Contribution margin 228 , 000 408 133 , 000 358 95, 000 508 Traceable fixed expenses 68 , 400 128 19 , 000 49 , 400 268 Market segment margin 159 , 600 288 $114 , 000 308 $ 45, 600 248 Common fixed expenses not traceable to markets 17, 100 38 Office segment margin $142 , 500 258 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 $7,600. Marketing studies indicate that such a campaign would increase sales in the Medical market by $66,500 or increase sales in the Dental market by $57,000. 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 company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market? Company's $ profits increase by 201,400