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s.doc : ACT 2620 : Assumption Unit 6 i Saved Help Save & Exit Check my w Assume that Minneapolis' sales by major market are:
s.doc : ACT 2620 : Assumption Unit 6 i Saved Help Save & Exit Check my w Assume that Minneapolis' sales by major market are: Market Minneapolis Medical Dental Sales $ 312, 000 100.00% $ 208, 000 100.00% $ 104, 000 100.00% Variable expenses 187, 200 60.00% 133, 120 64. 00% 54, 080 52.00% Contribution margin 124, 800 40. 00% 74, 880 36. 00% 49 , 920 48. 00% Traceable fixed expenses 34, 320 11. 00% 12,480 6.00% 21, 840 21. 00% Market segment margin 90, 480 29. 00% $ 62, 400 30.00% $ 28, 080 27.00% Book Common fixed expenses not traceable to markets 15, 600 5.00% Office segment margin $ 74, 880 24.00% Print 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 $5,200. Marketing studies indicate that such a campaign would increase sales in the Medical market by $41,600 or increase sales in the Dental market by $36,400. rences 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? 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 Medical Market? Company's profits by
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