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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

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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: Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Common fixed expenses nat traceable to offices Net operating income Total Company 5 587,000 lees 253,500 50% 253,500 50% 141,960 28 111,548 22 70,980 14% $ 40,560 Office Chicago Minneapolis $ 178,500 100% $ 328,500 100% 53,550 30% 197, 100 50 124,950 20% 131,400 40% 92.820 52,560 16% $ 32,130 18% $ 78,840 24% Assume that Minneapolis' sales by major market are Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating Incon Minneapolis $ 328,500 100% 197, 100 131,400 40 52,550 16% 75,840 15.00 5 % $ 63,84019 Market Medical Dental $ 238,000 100% 5 138,300 100% 152,320 64% 21.760 52% 25,60 SON 36.240 48% 14,20 6X 20.90 21% $ 79,00 BOK $ 37,260 27% 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 $14.500. Marketing studies indicate that such a campaign would increase sales in the Medical market by $59.000 or increase sales in the Dental market by 563 500 Required: 1. How much would the company's profits increase (decrease in implemented the advertising campaign in the Medical Marker 2. How much would the company's profits increase (decrease) ir it implemented the advertising campaign in the Dental Market? 3. in which of the markets would you recommend that the company focus is advertising campaign Complete this question by entering your answers in the tabs below Required quired 2 Required a How much would the company's profits increase (decrease if it implemented the advertising campaign in the Medical Market

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