Required Information SB Exercise 6-16 through Exercise 6-17 (Static) [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 $ 450,000 1eex 225,000 50% 225,000 sex 126,000 28% 99,000 22% 63,00 14% $ 36,eee 8% Office Chicago Minneapolis $ 158, eee 18ex $ 300,000 1eex 45,000 30% 180, eee 60% 105,000 70% 120, eee 4e 78, eee 52% 48, eee 16% $ 27,000 18% $ 72, cee 24% Exercise 6-17 (Static) Working with a Segmented Income Statement (LO6-4) 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 $ 300,eee 100% 189,880 128,888 4 33,880 11% 87.000 29% 15,880 5% $ 72,000 24% Market Medical Dental $ 200,000 100 $ 180, eee 100% 128,000 64% 52,800 52% 72,000 36% 48. Bee 48% 12.989 6X 21 Bee 21% $ 68,000 38% $ 27,800 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 by Required 2 > Required Information SB Exercise 6-16 through Exercise 6-17 (Static) 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 $ 450, eee 100% 225, eee 50% 225,000 50% 126, cee 28% 99, cee 22x 63,000 14% $ 36,000 Office Chicago Minneapolis $ 150,00 1oox $ 300,000 100% 45,000 30% 180,000 60% 105,000 70% 120,000 40% 78,000 52% 48,000 16% $ 27,000 18% $ 72,000 24% Exercise 6-17 (Static) Working with a Segmented Income Statement (LO6-4) 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 $ 300,000 100% 180.000 68% 120,000 40% 33 000 11% 87,000 29% 15,000 5% $ 72,800 24% Market Medical Dental $ 209,90 100% $ 100,000 100% 128, eee 64% 52,899 52% 72,000 36% 48,eee 48% 12, eee 6% 21.989 21% $ 69, eee 3ex $ 27,880 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 Dental Market? Company's profits by f4 Required Information SB Exercise 6-16 through Exercise 6-17 (Static) [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: 1 ok 50% Office Chicago Minneapolis $ 150,000 100% $ 300,000 100x 45, eee 3ex 180, eee 60% 105,eee 70% 120,000 40% 78,000 52% 48,000 16% $ 27,eee 18% $ 72,000 24% Total Company $ 450,000 100% 225, cee 50% 225, eee 126, eee 28% 99, eee 22% 63,00 14% $36, ege 8% Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income 1 nces Exercise 6-17 (Static) Working with a Segmented Income Statement [LO6-4] 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 $ 390,000 100% 180,000 68% 120,000 40% 33.889 11% 87,000 29% 15,800 5 $ 72,800 24% Market Medical Dental $ 288, 890 100% $ 180,00 100% 128, eee 64% 52,000 52% 72,000 36% 48, see 48% 12,898 6% 21, ege 21% $ 60, see 30% $ 27, see 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 $40.0 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 in which of the markets would you recommend that the company focus its advertising campaign? Medical Dental