Assume that Minneapolis' sales by major market are: Minneapolis Sales $ 339,000 $113,000 100% 203,400 Variable expenses

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Assume That Minneapolis Sales By Major Market Are Minneapolis Sales 339 000 113 000 100 203 400 Variable Expenses 1 (46.78 KiB) Viewed 13 times

Assume that Minneapolis' sales by major market are: Minneapolis Sales $ 339,000 $113,000 100% 203,400 Variable expenses Contribution margin 100% 64% 36% Traceable fixed expenses 100% 60% 40% 135,600 11% 37,290 98,310 29% 16,950 5% 144,640 81,360 13,560 30x 6X 58,760 52% 48% 54,240 21x 23,730 $ 30,510 27% office segment margin $ 67,800 Common fixed expenses not traceable to offices Net operating income- $ 81,360 24 % 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 $5,650. Marketing studies indicate that such a campaign would increase sales in the Medical market by $45,200 or increase sales in the Dental market by $39,550. 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? Medical $ 226,000 Market Dental