Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two officesone 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:

Total CompanyOfficeChicagoMinneapolisSales$ 531,000100.00%$ 177,000100.00%$ 354,000100.00%Variable expenses265,50050.00%53,10030.00%212,40060.00%Contribution margin265,50050.00%123,90070.00%141,60040.00%Traceable fixed expenses148,68028.00%92,04052.00%56,64016.00%Office segment margin116,82022.00%$ 31,86018.00%$ 84,96024.00%Common fixed expenses not traceable to offices74,34014.00%Net operating income$ 42,4808.00%

rev: 06_09_2020_QC_CS-215744, 09_15_2020_QC_CS-220558, 11_04_2020_QC_CS-238526, 03_30_2021_QC_CS-258090

Assume that Minneapolis' sales by major market are:

MinneapolisMarketMedicalDentalSales$ 354,000100.00%$ 236,000100.00%$ 118,000100.00%Variable expenses212,40060.00%151,04064.00%61,36052.00%Contribution margin141,60040.00%84,96036.00%56,64048.00%Traceable fixed expenses38,94011.00%14,1606.00%24,78021.00%Market segment margin102,66029.00%$ 70,80030.00%$ 31,86027.00%Common fixed expenses not traceable to markets17,7005.00%Office segment margin$ 84,96024.00%

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 $5,900. Marketing studies indicate that such a campaign would increase sales in the Medical market by $47,200 or increase sales in the Dental market by $41,300.

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?