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The following information applies to the questions displayed below! Raner, Harris & Chan is a consulting firm that specializes in Information systems for medical and

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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 indome statement for the company's most recent year is given: office Total Company Chicago Minneapolis Sales $ 535,500 100.000 $ 179,500 100.000 $ 357,000 100.000 Variable expenses 267,750 50.000 53,550 30.000 214,200 60.000 Contribution margin 267,750 50.000 124,950 70.000 142,800 40.000 Traceable fixed expenses 149,940 28.000 92,820 52.000 57, 120 16.000 office segment margin 117,810 22.000 $ 32,130 18.000 $ 85,680 24.000 Common fixed expenses not traceable to offices 74,970 14.000 Net operating income $ 42,840 8.000 64.001 Assume that Minneapolis' sales by major market are: Market Minneapolis Medical Dental Sales $ 357,000 100.004 $ 238,000 100.000 $ 119,000 100.004 Variable expenses 214,200 60.00 152,320 61,860 52.000 Contribution margin 142,800 40.000 85,680 36.000 57,120 48.000 Traceable fixed expenses 39,270 11.000 14,280 6.00 24,990 21.00 Market segment margin 103,530 29.000 $ 71,400 30.000 $ 32,130 27.00 Common fixed expenses not traceable to markets 17,850 5.000 office segment margin $ 85,680 24.008 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 $5,950. Marketing studies indicate that such a campaign would increase sales in the Medical market by $47,600 or increase sales in the Dental market by $41,650. 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

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