Required Information SB Exercise 6-16 through Exercise 6-17 (Algo) [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 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: Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 498,580 182.ee 245, 250 52.ee 245,250 50.00% 137, 340 28.sex 107,910 22.00% Office Chicago Minneapolis $ 163,500 100.00% $ 327,eee 180.89% 49,95e 3e.ee% 196,280 60.00% 114,45e 70.eex 130,880 40.00% 85,020 52.00% 52,320 16.eex $ 29,430 18. sex $ 78,480 24.09% 68,670 $ 39,240 14.ee 8.8% Exercise 6-17 (Algo) Working with a Segmented Income Statement [L06-4] Assume that Minneapolis' sales by major market are: Sales Variable expenses Contribution margin Traceable fixed expenses Market segment margin Common fixed expenses not traceable to markets Office segment margin Minneapolis $ 327,eee 180.00% 196,280 60.ee% 138,888 40.ee% 35,970 11.sex 94,830 29.80% 16,350 5.eex $ 78,480 24.ee% Market Medical Dental $ 218,00 100.00% $ 109,982 180.sex 139,520 64.sex 56,680 52.ee% 78,480 36.ee% 52,320 48.00% 13,080 6.ee% 22,899 21.ee $ 65,400 3e.eex $ 29,430 27.ee% 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 $5,450. Marketing studies indicate that such a campaign would increase sales in the Medical market by $43.600 or increase sales in the Dental market by $38,150. 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 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 Dental Market? Company's profits by Problem 6-21 (Algo) Segment Reporting and Decision-Making [L06-4] Vulcan Company's contribution format income statement for June is as follows: Vulcan Company Income Statement For the Month Ended June 30 Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 900,880 408,eee 492,800 465,00 $ 27,980 Management is disappointed with the company's performance and is wondering what can be done to improve profits. By examining sales and cost records, you have determined the following: a. The company is divided into two sales territoriesNorthern and Southern. The Northern Territory recorded $400,000 in sales and $228,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory. Fixed expenses of $168.000 and $130.000 are traceable to the Northern and Southern Territories, respectively. The rest of the fixed expenses are common to the two territories. b. The company is the exclusive distributor for two products-Paks and Tibs. Sales of Paks and Tibs totaled $140.000 and $260,000. respectively, in the Northern territory during June. Variable expenses are 31% of the selling price for Paks and 71% for Tibs. Cost records show that $64.400 of the Northern Territory's fixed expenses are traceable to Paks and $52,000 to Tibs, with the remainder common to the two products. Required: 1-a. Prepare contribution format segmented income statements for the total company broken down between sales territories. 1-5. Prepare contribution format segmented income statements for the Northern Territory broken down by product line. Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Prepare contribution format segmented income statements for the total company broken down between sales territories. (Round the percentage answers to one decimal place (i.e.1234 should be entered as 12.3).) Sales Territory Total Company Amount % Amount Northern Southern Amount % % 0 0.0 0 0.0 0 0.0 0 0.0 $ 0.0 s 0.0 S 0 0.0 (Reg 1A Reg 1B > Required: 1-a. Prepare contribution format segmented income statements for the total company broken down between sales territories. 1-6. Prepare contribution format segmented income statements for the Northern Territory broken down by product line. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Prepare contribution format segmented income statements for the Northern Territory broken down by product line. (Round the percentage answers to one decimal place (i.e.1234 should be entered as 12.3).) Product Line Paks Tibs Northern Territory Amount % Amount % Amount % 0 0.0 0 0.0 0 0.0 0 0.0 S 0 0.0 $ 0 0.0 $ 0 0.0