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 100% Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 100% 462,000 231,000 50% 231,000 50% 129,360 28% 101,640 22% Office Chicago Minneapolis $ $ 100% 156,000 306,000 46,800 30% 183,600 60% 109,200 70% 122,400 40% 81,120 52% 48,960 16% $ 28,080 18% $ 73,440 24% 64,680 14% $36,960 8% Assume that Minneapolis' sales by major market are: Sales Minneapolis $ 100% 306,000 183,600 60% 122,400 40% 48,960 16% Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income Market Medical Dental $ $ 100% 100% 208,000 108,000 133,120 64% 56,160 52% 74,880 36% 51,840 48% 12,480 6% 22,680 21% $ 62,400 30% $29,160 27% 73,440 24% 15,000 5% $ 58,440 19% 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 $7,000. Marketing studies indicate that such a campaign would increase sales in the Medical market by $44,000 or increase sales in the Dental market by $41,000. 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? (Source: https://www.homeworklib.com)