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SB Exercise 6 - 1 6 through Exercise 6 - 1 7 ( Algo ) [ The following information applies to the questions displayed below.

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 officesone 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 companys most recent year is given below:
Total Company Office
Chicago Minneapolis
Sales $ 468,000100.00% $ 156,000100.00% $ 312,000100.00%
Variable expenses 234,00050.00%46,80030.00%187,20060.00%
Contribution margin 234,00050.00%109,20070.00%124,80040.00%
Traceable fixed expenses 131,04028.00%81,12052.00%49,92016.00%
Office segment margin 102,96022.00% $ 28,08018.00% $ 74,88024.00%
Common fixed expenses not traceable to offices 65,52014.00%
Net operating income $ 37,4408.00%
Exercise 6-17(Algo) Working with a Segmented Income Statement [LO6-4]
Assume Minneapoliss sales by major market are:
Minneapolis Market
Medical Dental
Sales $ 312,000100.00% $ 208,000100.00% $ 104,000100.00%
Variable expenses 187,20060.00%133,12064.00%54,08052.00%
Contribution margin 124,80040.00%74,88036.00%49,92048.00%
Traceable fixed expenses 34,32011.00%12,4806.00%21,84021.00%
Market segment margin 90,48029.00% $ 62,40030.00% $ 28,08027.00%
Common fixed expenses not traceable to markets 15,6005.00%
Office segment margin $ 74,88024.00%
The company is planning a $5,200 advertising campaign next month in either the Medical or Dental market. Marketing studies indicate this campaign would increase Medical market sales by $41,600 or Dental market sales by $36,400.
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?
Please answer allll!!!!!

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