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Raner, Harris and 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:

Assume that Minneapolis' sales by major market are:

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 $$5,800.$ Marketing studies indicate that such a campaign would increase sales in the Medical market by $$46,400$

or increase sales in the Dental market by $$40,600.$

Required:

How much would the company's profits increase $($decrease$)$ if it implemented the advertising campaign in the Medical Market?

How much would the company's profits increase $($decrease$)$ if it implemented the advertising campaign in the Dental Market?

In which of the markets would you recommend that the company focus its advertising campaign?