Required information SB Exercise 7-16 through Exercise 7-17 (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: Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 504,000 100% 252,000 50% 252,000 50% 141, 120 28% 22% 110,880 70,560 14% 8% $ 40,320 N Office Chicago $ 168,000 100% 50,400 30% 117,600 70% 87,360 52% $ 30,240 18% Minneapolis $ 336,000 100% 201,600 60% 134,400 40% 53,760 16% 24% $ 80,640

How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market? Complete this question by entering your answers in the tabs below. 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. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Dental Market? Required information SB Exercise 7.16 through Exercise 7.17 (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: Exercise 7-17 (Algo) Working with a Segmented Income Statement [LO7-4] 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 \$5,600. Marketing studies indicate that such a campaign would increase sales in the Medical market by $44,800 or increase sales in the Dental market by $39,200. Required: 1. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market? . How me 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