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Required information [ The following information applies to the questions displayed below. ] Raner, Harris and Chan is a consulting firm that specializes in information
Required information
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 officesone 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:
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 $ Marketing studies indicate that such a campaign would increase sales in the Medical market by $ or increase sales in the Dental market by $
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?
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