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 28.00% 115,830 22.00% Office Chicago Minneapolis $ 175,500 100.00% $ 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 16.90% $ 31,590 18.00% $ 84,240 24.90% 14.00% 73,710 $ 42,120 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% 17,550 5.00% $ 84,240 24.00% 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 48.00% 14,040 6.00% 24,570 21.00% $ 70,200 30.00% $ 31,590 27.00% 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