SB Exercise 7-16 through Exercise 7-47 (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 Office Total Company Chicago Sales $507.000 1001 $ 178,500 100 $ 130,500 100 Variable expenses So 53.55 197/100 Contribution argin 255,500 SO 12.90 111,100 Traceable fixed expertos 1412 Office at margin 111,540 $ 33130 ST Common fixed expenses not traceable to offices operating income 5.40,560 Assume that Minneapolis' sales by major market are Minneapolis Medical Dental Sales 5 328,500 100% $ 238,000 100% $ 138,00 100 Variable expenses 197, 100 605 152,320 71,760 Contribution margin 131,400 40% 85,680 365 56,240 48% Traceable fixed expenses 52,560 16 14,200 ES 28,980 Office segment margin 78,848 5 71,400 3e 537,250 273 Common fixed expenses not traceable to offices 15,00 53 Net operating income $ 63,848 19 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 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