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 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: Office Total Company Chicago Minneapolis Sales $ 490,500 100.00% $ 163,500 100.00% $ 327,000 100.00% Variable expenses 245,250 50.00% Contribution margin 245,250 50.00% 49,050 114,450 30.00% 196,200 60.00% 70.00% 130,800 40.00% Traceable fixed expenses 137,340 28.00% 85,020 52.00% 52,320 16.00% Office segment margin 107,910 22.00% $ 29,430 18.00% $ 78,480 24.00% Common fixed expenses not traceable to offices 68,670 Net operating income $ 39,240 14.00% 8.00% Assume that Minneapolis' sales by major market are: Market Minneapolis Medical Dental Sales Variable expenses $ 327,000 196,200 100.00% $ 218,000 60.00% 139,520 100.00% 64.00% $ 109,000 100.00% 56,680 52.00% Contribution margin 130,800 40.00% 78,480 36.00% 52,320 48.00% Traceable fixed expenses 35,970 11.00% 13,080 6.00% 22,890 21.00% Market segment margin 94,830 29.00% $ 65,400 30.00% $ 29,430 27.00% Common fixed expenses not traceable to markets Office segment margin 16,350 $ 78,480 5.00% 24.00% 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 $5,450. Marketing studies indicate that such a campaign would increase sales in the Medical market by $43,600 or increase sales in the Dental market by $38,150. 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?