[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: Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 482,000 1008 239, 400 50% 242,600 509 136,880 289 105,720 220 67,480 144 $ 38,240 88 office Chicago Minneapolis $ 166,000 1008 $ 316,000 1008 49,800 308 189,600 603 116,200 709 126,400 408 86,320 528 50,560 16% $ 29,880 18 $ 75,840 248 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 Teaceable fixed expenses Market sent margin Minneapolis $ 316,000 1000 189,600 608 126,400 408 34,760 118 91,640 298 Market Medical Dental $ 232,000 1008 $132.000 1001 140,480 648 68,640 524 96,000 366 63,360 13,920 69 27, 720 210 69,600 300 $ 35,640 270 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 Minneapolis S 316,000 100% 189,600 609 126,400 40% 34,760 118 91,640 294 15,800 58 $ 75,840 240 Market Medical Dental $ 232,000 1004 $ 132,000 1000 148, 480 648 68,640 528 96,000 368 63,360 13,920 68 27.720 210 $ 69,600 308 $ 35,640 278 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 $13,000. Marketing studies indicate that such a campaign would increase sales in the Medical market by $56,000 or increase sales in the Dental market by $59,000. 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. Required 1 Required 2 Required 3 How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market? Company's profit by rad Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Dental Market? Company's profits by competitory your answers in the tabs below. Required 1 Required 2 Required 3 in which of the markets would you recommend that the company focus its advertising campaign? Medical Dental