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 segnent margin Connon fixed expenses not traceable to offices Net operating income Total Company $ 508,500 180.sex 254,250 50.sex 254,250 50.00% 142,380 28.00% 111,870 22.eex Office Chicago Minneapolis $ 169,500 100.cox $ 339,000 180.eex se,850 30.00% 203, 4ee 60.00% 118,650 70.00% 135,580 40.8ex 88,140 52.00% 54,240 16.eex $ 30,510 18.00% $ 81,360 24.ee 71,190 $ 40,680 14.00% 8.6ex Assume that Minneapolis' sales by major market are: Market Minneapolis Medical Dental Sales $ 339,000 100.0 $ 226,000 100.00% $ 113,000 100.00 Variable expenses 203,400 60.00% 144,640 64.00% 58,760 52.000 Contribution margin 135,600 40.00% 31,360 36.00% 54,240 48.000 Traceable Fixed expenses 37,200 11.00% 13,560 6.00 23,730 21.00% Market segment margin 98,310 20.00% $ 67,800 30.00% $ 30,510 27.00% Connon fixed expenses not traceable to markets 16,950 5.000 office seprent margin $ 81,360 24.00% 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 $5,650 Marketing studies indicate that such a campaign would increase sales in the Medical market by $45,200 or increase sales in the Dental market by $39,550. 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 by (Required 1 Required 2 > Required 1 Required 2 Required 3 How much would the company's profits Increase (decrease) if it implemented the advertising campaign in the Dental Market? Company's profits by Required 1 Required 2 Required 3 In which of the markets would you recommend that the company focus its advertising campaign? Medical O Dental