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: Assume that Minneapolis' sales by major market are: Market Minneapoli Medical Dental $600,000 1000 $400,000 1001 $200,000 1000 360,000 604 260,000 658 100.000 500 240,000 400 140,000 350 100,000 500 22.000 20.000 50 52,000 265 168,000 28 $120,000 301 $ 48,000 248 Sales Variable expenses Contribution margin Traceable fixed expenses Market segment margin Connon fixed expenses not traceable to markets office wegnent margin 126 18,000 $150,000 250 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 $8,000. Marketing studies indicate that such a campaign would increase sales in the Medical market by $70,000 or increase sales in the Dental market by $60,000 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? 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? Medical Dental