xercise 7-17 Working with a Segmented Income Statement (L07-4) Ranver, Hams & 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 Assume that Minneapolis sales by major market are Sales Variable expenses Contribution margin Trackble fixed expenses Market segment margin Con fixed expenses not treceable to markets office et margin Market Minneapolis Medical Dental 5840.000 100 3560 som $200,000 100 506,00 60 364.000 613 10.00 SON 336.000 40 106,000 358 140,000 100.000 12% 20.00 SN 122.000 235,200 2 5160.00 5.67,2004 25,200 $210,000 25% 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 $11.200 Marketing studies indicate that such a campaign would increase sales in the Medical market by $98.000 or increase sales in the Dental market by 584.000 Required: 1 How much would the company's profits increase (decrease it implemented the advertising campaign in the Medical Market 2 How much would the company's profits increase (decrease) it implemented the advertising campaign in the Dental Market? 3. in which of the markets would you recommend that the company focus is advertising campaign? Required: Required 2 Required 37 How much would the company's profits increase (decrease it implemented the advertising campaign in the Medical Market Conso Required 1 Required 2 Required How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Dental Market? Cinpany's profile