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: Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income Office Total Company Chicago Minneapolis $ 508,500 254,250 100.00% 50.00% $ 169,500 100.00% $339,000 100.00% 50,850 30.00% 283,400 60.00% 254,250 50.00% 118,650 70.00% 135,600 40.00% 142,380 28.00% 88,140 52.00% 54,240 16.00% 111,870 22.00% $ 30,510 18.00% $ 81,360 24.00% 71,190 14.00% $ 40,680 8.00% Assume that Minneapolis' sales by major market are: Sales Variable expenses Contribution margin Traceable fixed expenses. Market segment margin. Market Minneapolis Medical Dental $339,000 100.00% $ 226,000 100.00% $113,000 100.00% 203,400 60.00% 144,640 64.00% 58,760 52.00% 135,600 40.00% 81,360 36.00% 54,240 48.00% 37,290 31.00% 13,560 6.00% 23,730 21.00% 98,310 29.00% $ 67,800 30.00% 530,510 27.00% 0 < Prev 5 of 5 Next > Check my work Required information. Minneapolis Medical Dental Sales Variable expenses $339,000 100.00% $226,000 100.00% $113,000 100.00% 203,400 60.00% 144,640 64.00% 58,768 52.00% Contribution margin 135,600 40.00% 81,360 36.00% 54,240 48.00% Traceable fixed expenses 37,290 11.00% 13,560 Market segment margin 98,310 29.00% $ 67,800 6.00% 30.00% $ 30,510 23,730 21.00 27.00% Common fixed expenses not traceable to markets 16,950 Office segment margin $ 81,360 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 $5,650. Marketing studies indicate that such a campaign would increase sales in the Medical market by $45,200 or Increase sales in the Dental market by $39,550. 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market? Company's profits by < Previ 8 in of 5 Next > Check Required information or increase sales in the Dental market by $39,550. 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How much would the company's profits Increase (decrease) if it implemented the advertising campaign in the Dental Market? Company's profits Company wou CAN u. markeung suures murcave ara sua campany wo CS San or increase sales in the Dental market by $39,550. Required: 1. How much would the company's profits increase (decrease) if it implemented the advertising campaign 2. How much would the company's profits increase (decrease) if it implemented the advertising campaign 3. 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. Required 1 Required 2 Required 3 In which of the markets would you recommend that the company focus its advertising campaign? OMedical Dental