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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 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 office Net operating income Total Company $ 458,000 1000 228,600 501 229,400 500 128.220 288 100,680 220 66, 120 140 $36,560 office Chicago Minneapolis $ 154,000 1008 $ 304,000 1000 46,200 300 182,400 608 107,800 700 121,600 405 80.000 528 48,640 168 $ 27,720 186 $ 72,960 240 ssume 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 $ 304,000 2008 182,400 601 121,600 408 33,440 110 88,160 298 15,200 5W $ 72,960 245 Market Medical Dental $ 200,000 1008 $ 100,000 1008 133, 120 640 56,160 523 78,000 368 51,840 488 12,480 60 22.680 210 $ 62,400 300 $ 29,160 274 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 $7.000. Marketing studies indicate that such a campaign would increase sales in the Medical market by $44,000 or increase sales in the Dental market by $41,000. 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 Medic Market? by Company's profits Complete this question by entering your answers in the tabs below. Required 1 Requred 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

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