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Required information [The following information applies to the questions displayed below) Raner, Harris & Chan is a consulting firm that specializes in information systems for

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Required information [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 tiet operating income Total Company $ 468,000 100% 233 100 50% 234.900 SON 132,120 285 102,780 226 65,520 145 $ 37,260 Office Chicago Rinneapolis $ 159,000 100% $ 309,000 100% 47.700 30 185,400 03 111,300 123,600 401 02.680 52% 49,440 $ 20,620 $ 74,160 245 Check my Assume that Minneapolis' sales by major market are: Sales Variable expenses Contribution margin Traceable fixed expenses Market segment margin Comon Fixed expenses not traceable to markets office segment margin Minneapolis $ 309,000 100% 185,400 60 123,600 GOK 33,990 115 89,610 295 15,450 5 $ 74,160 24 Market Medical Dental $ 218,000 100% $ 110,000 100% 139,520 645 61.360 528 85,500 365 56,640 13,050 ex 24,780 215 $ 65,400 305 $ 31,860 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 $9,500. Marketing studies indicate that such a campaign would increase sales in the Medical market by S49,000 or increase sales in the Dental market by 548,500, 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

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