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 office Sales Variable expenses Contribution margin Traceable fixed expenses office senent margin Common fixed expenses not traceable to offices Het operating income Total Company $ 453,000 100% 226,500 sex 226,500 50% 126,840 28% 99.660 63,420 14% $ 36,240 8* Chicago $ 151,500 100% 45,450 30 106,050 70% 78.780 52% $ 27,270 18 Minneapolis $ 301,500 100% 180,900 603 120,600 403 48,240 16% $ 72,360 24% 22x Assume that Minneapolis' sales by major market are Minneapolis $ 301,500 100% 180,900 60% 120,600 40% 48,240 16 72,360 24 15,000 55 $ 57,360 19 X Market Medical Dental $ 202,000 100% $ 102,000 100 129,250 53,040 52 72,720 36 48,960 481 12,120 6% 21.420 21% $ 60,600 30% $ 27.540 22 Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income 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 $5.500 Marketing studies indicate that such a campaign would increase sales in the Medical market by $41,000 or increase sales in the Dental market by $36,500 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? 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 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 Denta Company's profits by 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? O Medical Dental
