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: Office Total Company Sales Chicago Minneapolis $ 477,000 1ee.ees $ 159,000 100.00% $ 318,000 100.00% Variable expenses 238,5ee se.ee 47.7ee 30.ee 190,880 50.00% Contribution margin 238,500 50.cox 111,300 70.00 127,200 te.es Traceable fixed expenses 133,560 28.eex 82,680 52.00 50,880 16.005 office segment margin 184,940 22.eex $ 28,620 18.Box 576,320 24.00 Common fixed expenses not traceable to offices 66,789 14.00% Net operating income $ 38,160 8.00% Sales Variable expenses Contribution margin Traceable fixed expenses Market segment margin Common fixed expenses not traceable to markets Office segment margin Minneapolis $ 318,000 1ee.ee% 198,800 te.es 127,200 40.08% 34,988 11.02% 92,220 29.00% 15,900 5.00% $ 76,320 24.08% Market Medical Dental $ 212, eee 100.00% $ 106, eee 100.es 135,689 64.00% 55,120 52.00 76,320 36.00% 58,888 48.Bax 12,720 6.00% 22,260 21. sex $ 63,600 3e.eex $ 28,620 27.02% The company would like to initiate an intensive advertising campaign in one of the two market segments during the next month campaign would cost $5,300 Marketing studies indicate that such a campaign would increase sales in the Medical market by $ or increase sales in the Dental market by $37100 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 increase 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) it implemented the advertising campaign in the Dental Market? Company's profite increase 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 Marketa 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? Medical Dental 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: Office Total Company Sales Chicago Minneapolis $ 477,000 1ee.ees $ 159,000 100.00% $ 318,000 100.00% Variable expenses 238,5ee se.ee 47.7ee 30.ee 190,880 50.00% Contribution margin 238,500 50.cox 111,300 70.00 127,200 te.es Traceable fixed expenses 133,560 28.eex 82,680 52.00 50,880 16.005 office segment margin 184,940 22.eex $ 28,620 18.Box 576,320 24.00 Common fixed expenses not traceable to offices 66,789 14.00% Net operating income $ 38,160 8.00% Sales Variable expenses Contribution margin Traceable fixed expenses Market segment margin Common fixed expenses not traceable to markets Office segment margin Minneapolis $ 318,000 1ee.ee% 198,800 te.es 127,200 40.08% 34,988 11.02% 92,220 29.00% 15,900 5.00% $ 76,320 24.08% Market Medical Dental $ 212, eee 100.00% $ 106, eee 100.es 135,689 64.00% 55,120 52.00 76,320 36.00% 58,888 48.Bax 12,720 6.00% 22,260 21. sex $ 63,600 3e.eex $ 28,620 27.02% The company would like to initiate an intensive advertising campaign in one of the two market segments during the next month campaign would cost $5,300 Marketing studies indicate that such a campaign would increase sales in the Medical market by $ or increase sales in the Dental market by $37100 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 increase 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) it implemented the advertising campaign in the Dental Market? Company's profite increase 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 Marketa 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? Medical Dental
