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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:

Total Company Office

Chicago Minneapolis

Sales $ $531,000100\mathrm{.}00\%$ $ $177,000100\mathrm{.}00\%$ $ $354,000100\mathrm{.}00\%$

Variable expenses $265,50050\mathrm{.}00\%53,10030\mathrm{.}00\%212,40060\mathrm{.}00\%$

Contribution margin $265,50050\mathrm{.}00\%123,90070\mathrm{.}00\%141,60040\mathrm{.}00\%$

Traceable fixed expenses $148,68028\mathrm{.}00\%92,04052\mathrm{.}00\%56,64016\mathrm{.}00\%$

Office segment margin $116,82022\mathrm{.}00\%$ $ $31,86018\mathrm{.}00\%$ $ $84,96024\mathrm{.}00\%$

Common fixed expenses not traceable to offices $74,34014\mathrm{.}00\%$

Net operating income $ $42,4808\mathrm{.}00\%$

Assume that Minneapolis$$ sales by major market are:

Minneapolis Market

Medical Dental

Sales $ $354,000100\mathrm{.}00\%$ $ $236,000100\mathrm{.}00\%$ $ $118,000100\mathrm{.}00\%$

Variable expenses $212,40060\mathrm{.}00\%151,04064\mathrm{.}00\%61,36052\mathrm{.}00\%$

Contribution margin $141,60040\mathrm{.}00\%84,96036\mathrm{.}00\%56,64048\mathrm{.}00\%$

Traceable fixed expenses $38,94011\mathrm{.}00\%14,1606\mathrm{.}00\%24,78021\mathrm{.}00\%$

Market segment margin $102,66029\mathrm{.}00\%$ $ $70,80030\mathrm{.}00\%$ $ $31,86027\mathrm{.}00\%$

Common fixed expenses not traceable to markets $17,7005\mathrm{.}00\%$

Office segment margin $ $84,96024\mathrm{.}00\%$

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 $$5,900.$ Marketing studies indicate that such a campaign would increase sales in the Medical market by $$47,200$ or increase sales in the Dental market by $$41,300.$

Required:

How much would the company's profits increase $($decrease$)$ if it implemented the advertising campaign in the Medical Market?

How much would the company's profits increase $($decrease$)$ if it implemented the advertising campaign in the Dental Market?

In which of the markets would you recommend that the company focus its advertising campaign?