SB Exercise $6-16$ through Exercise $6-17($Algo$)$

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$[$The following information applies to the questions displayed below.$]$

Raner, Harris and Chan is a consulting firm specializing in information systems for medical and dental clinics. The firm has two offices$$one in Chicago and one in Minneapolis. It classifies the direct costs of consulting jobs as variable costs. A contribution format segmented income statement for the company$$s most recent year is given below:

Total Company Office

Chicago Minneapolis

Sales $ $522,000100\mathrm{.}00\%$ $ $174,000100\mathrm{.}00\%$ $ $348,000100\mathrm{.}00\%$

Variable expenses $261,00050\mathrm{.}00\%52,20030\mathrm{.}00\%208,80060\mathrm{.}00\%$

Contribution margin $261,00050\mathrm{.}00\%121,80070\mathrm{.}00\%139,20040\mathrm{.}00\%$

Traceable fixed expenses $146,16028\mathrm{.}00\%90,48052\mathrm{.}00\%55,68016\mathrm{.}00\%$

Office segment margin $114,84022\mathrm{.}00\%$ $ $31,32018\mathrm{.}00\%$ $ $83,52024\mathrm{.}00\%$

Common fixed expenses not traceable to offices $73,08014\mathrm{.}00\%$

Net operating income $ $41,7608\mathrm{.}00\%$

Exercise $6-17($Algo$)$ Working with a Segmented Income Statement $[$LO$6-4]$

Assume Minneapolis$$s sales by major market are:

Minneapolis Market

Medical Dental

Sales $ $348,000100\mathrm{.}00\%$ $ $232,000100\mathrm{.}00\%$ $ $116,000100\mathrm{.}00\%$

Variable expenses $208,80060\mathrm{.}00\%148,48064\mathrm{.}00\%60,32052\mathrm{.}00\%$

Contribution margin $139,20040\mathrm{.}00\%83,52036\mathrm{.}00\%55,68048\mathrm{.}00\%$

Traceable fixed expenses $38,28011\mathrm{.}00\%13,9206\mathrm{.}00\%24,36021\mathrm{.}00\%$

Market segment margin $100,92029\mathrm{.}00\%$ $ $69,60030\mathrm{.}00\%$ $ $31,32027\mathrm{.}00\%$

Common fixed expenses not traceable to markets $17,4005\mathrm{.}00\%$

Office segment margin $ $83,52024\mathrm{.}00\%$

The company is planning a $$5,800$ advertising campaign next month in either the Medical or Dental market. Marketing studies indicate this campaign would increase Medical market sales by $$46,400$ or Dental market sales by $$40,600.$

Required:

How much would the company's profits increase $($decrease$)$ if it advertised in the Medical market?

How much would the company's profits increase $($decrease$)$ if it advertised in the Dental market?

Should the company advertise in the Medical or Dental market?Required Information

SB Exercise $6-16$ through Exercise $6-17($Algo$)$

$[$The following information applies to the questions displayed below.$]$

Raner, Harris and Chan is a consulting firm specializing in information systems for medical and dental clinics. The firm has

two offices $-$ one in Chicago and one in Minneapolis. It 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 below:

Exerclse $6-17($Algo$)$ Worklng with a Segmented Income Statement $[$LO$6-4]$

Assume Minneapolis's sales by major market are:

The company is planning a $$5\mathrm{.}800$ advertising campaign next month in either the Medical or Dental market. Marketing studies indicate

this campaign would increase Medical market sales by $$46,400$ or Dental market sales by $$40,600.$

Requlred:

How much would the company's profits increase $($decrease$)$ if it advertised in the Medical market?

How much would the company's profits increase $($decrease$)$ if it advertised in the Dental market?

Should the company advertise in the Medical or Dental market?

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How much would the company's profits increase $($decrease$)$ if it advertised in the Medical market?

PLS NEED HELP ON $1,2,3$