SB Exercise 7-16 through Exercise 7-17 (Algo) [The following information applies to the questions displayed below) Raner. Harris & 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 Teaceable fixed expenses office segment margin Common fixed expenses not traceable to officer Net operating income Son Total Company $ 507,000 1000 253,500 508 253,500 141,960 280 111,540 70, 980 145 $ 40,560 88 office Chicago Minneapolis $ 178,500 1000 $ 328,500 100$ 53,550 301 197, 100 600 124,950 701 131,400 400 92,820 520 52,560 16 $ 32,130 18. $ 78.840 220 246 Exercise 7-17 (Algo) Working with a Segmented Income Statement (L07-4) Assume that Minneapolis' sales by major market are: Sales Variable expenses Contribution margin Treble fixed expenses otricesegnent margin Common fixed expenses not traceable to offices Het operating to Minneapolis $ 328,500 1000 192.100 604 131,400 400 52.560 168 78,840 240 15.000 5) $63,640 Market Medical Dental $ 238,000 1001 $ 138,000 1000 152,320 540 71.260 528 85,680 361 66,240 489 14,280 68 28,980 210 $71.400 303 $ 37,260 276 19 Print erences 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 $14,500. Marketing studies indicate that such a campaign would increase sales in the Medical market by $59,000 or increase sales in the Dental market by $63,500 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) fit 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 How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market? Company's profit by Required 2 > 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
