[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 Minneapolis $476,000 100% $163,000 100% $313,000 100% 236,700 50% 48,900 30% 187,800 60% 239,300 50% 114,100 70% 125,200 40% 134, 840 28% 84,760 52% 50,080 104,460 22% $ 29,340 18% $ 75, 120 24% Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income 16% 66,640 $ 37,820 14% 8% Exercise 6-17 (Algo) Working with a Segmented Income Statement (LO6-4) Assume that Minneapolis' sales by major market are: Sales Variable expenses Contribution margin Traceable fixed expenses Market segment margin Common fixed expenses not traceable to markets Office segment margin Market Minneapolis Medical Dental $313,000 100% $226,000 100% $126,000 100% 187,800 60% 144,640 64% 65,520 52% 125,200 40% 91,500 36% 60,480 48% 34,430 11% 13,560 6% 26, 460 21% 90, 770 29% 67,800 30% $ 34,020 27% 15,650 $ 75, 120 5% 24% 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 $11,500. Marketing studies indicate that such a campaign would increase sales in the Medical market by $53,000 or increase sales in the Dental market by $54,500. 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? Complete this question by entering your answers in the tabs below