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 Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 526,500 100.008 263, 250 50.00% 263, 250 50.00% 147,420 28.00% 115,830 22.000 Office Chicago Minneapolis $ 175,500 100.008 $ 351,000 100.00% 52,650 30.00% 210,600 60.00% 122,850 70.00% 140,400 40.00% 91,260 52.00% 56,160 16.00% $ 31,590 18.00% $ 84,240 24.00% 73, 710 $ 42, 120 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 $ 351,000 100.00% 210,600 60.000 140,400 40.000 38,610 11.00% 101,790 29.00% Market Medical Dental $ 234,000 100.00% $ 117,000 100.00% 149, 760 64.008 60,840 52.00% 84,240 36.000 56,160 48.00% 14,040 6.008 24,570 21.00% $ 70,200 30.00% $ 31,590 27.00% 17,550 $ 84,240 5.000 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 $5,850. Marketing studies indicate that such a campaign would increase sales in the Medical market by $46,800 or increase sales in the Dental market by $40,950. 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 by 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 Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 526,500 100.00% 263, 250 50.00% 263, 250 50.00% 147, 420 28.000 115,830 22.00% office Chicago Minneapolis $ 175,500 100.008 $ 351,000 100.00% 52,650 30.00% 210,600 60.00% 122,850 70.00% 140,400 40.00% 91,260 52.00% 56,160 16.00% $ 31,590 18.00% $ 84,240 24.00% 73, 710 $ 42,120 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 $ 351,000 100.00% 210,600 60.00% 140,400 40.00% 38,610 11.00% 101,790 29.00% Market Medical Dental $ 234,000 100.008 $ 117,000 100.00% 149,760 64.008 60,840 52.00% 84,240 36.008 56,160 48.000 14,040 6.008 24,570 21.008 $ 70, 200 30.00% % $ 31,590 27.008 17,550 $ 84,240 5.00% 24.008 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 $5,850. Marketing studies indicate that such a campaign would increase sales in the Medical market by $46,800 or increase sales in the Dental market by $40,950. 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 Dental Market? Company's profits by 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 Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 526,500 100.008 263,250 50.00% 263,250 50.008 147,420 28.008 115,830 22.00% office Chicago Minneapolis $ 175,500 100.003 $ 351,000 100.00% 52,650 30.00% 210,600 60.00% 122,850 70.00% 140,400 40.00% 91,260 52.003 56,160 16.00 $ 31,590 18.00% $ 84,240 24.00% 73, 710 $ 42, 120 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 $ 351,000 100.00% 210,600 60.00% 140,400 40.00% 38,610 11.00% 101,790 29.008 Market Medical Dental $ 234,000 100.00% $ 117,000 100.00% 149,760 64.00% 60,840 52.00% 84,240 36.00% 56,160 48.008 14,040 6.00% 24,570 21.00% $ 70,200 30.008 $ 31,590 27.00% 17,550 $ 84,240 5.00% 24.008 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 $5,850. Marketing studies indicate that such a campaign would increase sales in the Medical market by $46,800 or increase sales in the Dental market by $40,950. 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 In which of the markets would you recommend that the company focus its advertising campaign? Medical Dental