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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
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. Assume that Minneapolis' sales by major market are: 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 $4,000. Marketing studies indicate that such a campaign would increase sales in the Medical market by $35,000 or increase sales in the Dental market by $30,000. a. Calculate the increased segment margin. b. In which of the markets would you recommend that the company focus its advertising campaign? Medical Dental
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