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 $ 472,500 100.00% 236, 250 50.00% 236, 250 50.00% 132,300 28.00 103,950 22.00% Office Chicago Minneapolis $ 157,500 100.00% $ 315,000 100.00% 47,250 30.00% 189,000 60.00% 110,250 70.00% 126,000 40.00% 81,900 52.00% 50,400 16.00% $ 28,350 18.00% $ 75,600 24.00% 66,150 $ 37,800 14.00% 8.00 Assume that Minneapolis' sales by major market are: Sales Variable expenses Contribution margin Traceable fixed expenses Market segment margin Common fixed expenses not traceable to markets Office segment margin Minneapolis $ 315,000 100.00% 189,000 60.00% 126,000 40.00% 34,650 11.00% 91,350 29.00% Market Medical Dental $ 210,000 100.00% $ 105,000 100.00% 134,400 64.00% 54,600 52.00% 75,600 36.00% 50,400 48.00% 12,600 6.00% 22,050 21.00% $ 63,000 30.00% $ 28,350 27.00% 15,750 $ 75,600 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 $5,250. Marketing studies indicate that such a campaign would increase sales in the Medical market by $42,000 or increase sales in the Dental market by $36,750. 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 increase by 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 increase by
