Required information SB Exercise 6-16 through Exercise 6-17 (Algo) [The following information applies to the questions displayed below.] Raner, Harris and 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: Office Total Company Chicago Minneapolis Sales $ 526,500 Variable expenses 263,250 100.00% 50.00% Contribution margin 263,250 50.00% $ 175,500 52,650 122,850 100.00% $ 351,000 30.00% 100.00% 210,600 60.00% 70.00% 140,400 40.00% Traceable fixed expenses 147,420 28.00% 91,260 52.00% 56,160 16.00 office segment margin 115,830 22.008 $ 31,590 18.00% $ 84,240 24.00% Common fixed expenses not traceable to offices 73,710 14.00% Net operating income. $ 42,120 8.00% Exercise 6-17 (Algo) Working with a Segmented Income Statement [LO6-4] Assume that Minneapolis' sales by major market are: Market Minneapolis Medical Dental 100 008 $117.000 100.00% Exercise 6-17 (Algo) Working with a Segmented Income Statement [LO6-4] Assume that Minneapolis' sales by major market are: Market Minneapolis, Medical Dental Sales Variable expenses Contribution margin $ 351,000 210,600 100.00% $ 234,000 100.00% $ 117,000 100.00% 60.00% 149,760 64.00% 60,840 52.00% 140,400 40.00% 84,240 36.00% 56,160 48.00% Traceable fixed expenses Market segment margin 38,610 101,790 11.00% 14,040 29.00% $ 70,200 6.00% 24,570 21.00% 30.00% $31,590 27.00% Common fixed expenses not traceable to markets Office segment margin 17,550 $ 84,240 5.00% 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 $5,850. Marketing studies indicate that such a campaign would increase sales in the Medical market by $46,800 or increase sales in the Dental market by $40,950. 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?