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 Net operating income Total Company $ 465,000 1008 232,500 508 232,500 508 130,200 289 102,300 220 65,100 148 $ 37,200 88 Office Chicago Minneapolis $ 157,500 1008 $ 307,500 100 47.250 308 184,500 608 110,250 708 123,000 405 81,900 528 49,200 166 $ 28,350 188 $ 73,800 246 Assume that Minneapolis' sales by major market are: 400 Market Medical Dental $ 210,000 1000 $ 110,000 1000 134,400 640 57,200 528 75,600 360 52,800 488 12,600 60 23,100 $ 63,000 308 $ 29,700 278 Minneapolis $ 307,500 1000 184,500 608 123,000 49,200 168 73,800 240 15,000 58 $ 58,800 198 Sales Variable expenses Contribution margin Traceable fixed expenses Market segment margin Common fixed expenses not traceable to markets Office segment margin 218 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 $7,500. Marketing studies indicate that such a campaign would increase sales in the Medical market by $45,000 or increase sales in the Dental market by $42,500. 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