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 Office segment margin Traceable fixed expenses Common fixed expenses not traceable to offices Net operating income Assume that Minneapolis' sales by major market are: Total Company Office Chicago $ 486,000 100% $ 162,000 100% Minneapolis $324,000 100% 243,000 50% 243,000 50% 136,080 28% 106,920 22% 68,040 14% $ 38,880 8% 48,600 30% 113,400 70% 84,240 52% $ 29,160 18 % 194,400 60% 129,600 40% 51,840 16% $ 77,760 24% Market Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income Minneapolis $ 324,000 100% 194,400 60% 129,600 40% 35,640 11% 93,960 29% 16,200 5% Medical Dental $ 216,000 100% $ 108,000 100% 138,240 64% 56,160 52% 77,760 36% 51,840 48% 12,960 6% 22,680 21% $ 64,800 30% $ 29,160 27% 24 $ 77,760 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 $5,400. Marketing studies indicate that such a campaign would increase sales in the Medical market by $43,200 or increase sales in the Dental market by $37,800. 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?