(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: Sales Variable expenses i Contribution margin: Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income office Total Company $ 468,000 100% 234,000 50% 234,000 50% 131,040 Chicago 46,800 30% 109,200 709 Minneapolis $156,000 100% $ 312,000 187,200 60% 100% 124,900 40% 209 81,120 524 49,920 164 102,960 65,520 149 $37,440 229 $28,080 10% $74,880 24% 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 Net operating income Market Minneapolis $ 312,000 100% 60% 107,200 40% 124,800 34,320 116 291 90,480 15,600 SB Medical $ 208,000 133,120 74,880 12,480 Dental 100% 644 $ 62,400 36% 69 30% $ 104,000 100% 52 54,080 49.920 48% 21,840 214 $28,080 27 $ 74,880 26 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.