[The following information applies to the questions displayed below.] 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: Office Total Company Chicago Minneapolis. Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income $ 517,500 100% 258,750 50 258,750 50% 144,900 281 113,850 228 72,450 14 $ 41,400 88 $ 172,500 100% $ 345,000 100% $ 31,050 51,750 30 120,750 89,700 52 189 207,000 60% 70% 138,000 40 55,200 169 $ 82,800 241 Exercise 7-17 (Algo) Working with a Segmented Income Statement [LO7-4] Assume that Minneapolis' sales by major market are: Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Market Minneapolis $345,000 100% 207,000 60% 138,000) 40 37,950 11 100,050 29 17,250 51 $ 82,800 24 A Medical Dental $ 230,000 100 147,200 648 82,800 368 13,800 68 59,800 $ 115,000 100% 526 55,200 485 24,150 21 $ 69,000 301 $31,050 27 Net operating Income 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 $5,750. Marketing studies indicate that such a campaign would increase sales in the Medical market by $46,000 or increase sales in the Dental market by $40 250