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 companys most recent year is given:

	Total Company		Office
			Chicago		Minneapolis
Sales	$ 471,000	100%	$ 160,500	100%	$ 310,500	100%
Variable expenses	235,500	50%	48,150	30%	186,300	60%
Contribution margin	235,500	50%	112,350	70%	124,200	40%
Traceable fixed expenses	131,880	28%	83,460	52%	49,680	16%
Office segment margin	103,620	22%	$ 28,890	18%	$ 74,520	24%
Common fixed expenses not traceable to offices	65,940	14%
Net operating income	$ 37,680	8%

Assume that Minneapolis sales by major market are:

	Minneapolis		Market
			Medical		Dental
Sales	$ 310,500	100%	$ 214,000	100%	$ 114,000	100%
Variable expenses	186,300	60%	136,960	64%	59,280	52%
Contribution margin	124,200	40%	77,040	36%	54,720	48%
Traceable fixed expenses	49,680	16%	12,840	6%	23,940	21%
Office segment margin	74,520	24%	$ 64,200	30%	$ 30,780	27%
Common fixed expenses not traceable to offices	15,000	5 %
Net operating income	$ 59,520	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 $8,500. Marketing studies indicate that such a campaign would increase sales in the Medical market by $47,000 or increase sales in the Dental market by $45,500.

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 by 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 Dental Market? Company's profits by Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 In which of the markets would you recommend that the company focus its advertising campaign? O Medical O Dental