required 1,2,3 please

ORN 1 0 AL Required information [The following information applies to the questions displayed below) Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm hos 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 Ofice Total Company Chicago Minneapolis Sales $ 450,000 100% $ 150,000 100% $ 300,000 100% Variable expenses 225.000 50% 45,000 30% Contribution margin 180, een 60% 225,000 50% 105,000 70% Traceable fixed expenses 120,000 40 126,000 285 78.000 52% 40.000 office sent margin 99,000 22% $ 27,000 18% $72,000 243 Common fixed expenses not treable to offices 61,000 14% Net operating income $36,000 8% Print Assume thot Minneapolis sales by major market are: Sales Variable wenses Contribution margin Traceable Fixed expenses Market sementarcin Common fixed expenses not traceable to markets Minneapolis $ 300,000 1003 110,000 120,000 403 11% 17.000 2013 15.000 5 Market Hedical Dental $ 200,000 100 $100,000 100% 120,000 64% 52,000 524 22,000 36% 48,000 12,000 6 21,000 211 $ 60,000 JOX 273 Prey 1 of 1 Next here to search O o EL Assume that Minneapolis' sales by major market are 60% Sales Variable expenses Contribution margin Traceable fixed expenses Market segment margin Common fixed expenses not traceable to markets Office segment margin Minneapolis $ 300,000 100% 180,000 120,000 40% 33.ee 11% 87,000 29% 15,000 5% $ 72,800 24% Market Medical Dental $ 200,000 100% $100,00 100% 128,000 64% 52,000 52% 72,eee 36% 48,000 483 12,000 6% 21,000 21% $ 60,000 30% $ 27,000 27% 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 $5.000. Marketing studies indicate that such a campaign would increase sales in the Medical market by $40,000 or increase sales in the Dental market by $35,000 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 Prey 1 of 1 ! Next