Raner, Harris and Chan is a consulting firm that specializes in information systems for medical and dental clinics. The

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Raner, Harris and 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 Assume that Minneapolis' sales by major market are: Exercise 7-17 (Algo) Working with a Segmented Income Statement [LO7-4] Sales Variable expenses Contribution margin Traceable fixed expenses Total Company $ 486,000 100% 243,000 50% 243,000 50% 136,080 283 106,920 22% 68,040 14% $ 38,880 BA office segment margin Common fixed expenses not traceable to offices Net operating income Minneapolis $ 324,000 100% 194,400 60% 129,600 40% 35,640 119 93,960 29% 16,200 5 $ 77,760 24 Chicago $ 162,000 100% 48,600 30% 70% 113,400 84,240 529 $ 29,160 18% Market Medical $ 216,000 100% 138,240 77,760 12,960 $ 64,800 30% office. 36% 61 Minneapolis $ 324,000 100% 194,400 60% 129,600 40% 51,840 16% $ 77,760 241 Dental $ 108,000 100% 56,160 528 51,840 48% 22,600 214 $29,160 27% 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 $5,400. Marketing studies indicate that such a campaign would increase sales in the Medical market by $43,200 or increase sales in the Dental market by $37,800.

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 $5,400. Marketing studies indicate that such a campaign would increase sales in the Medical market by $43,200 or increase sales in the Dental market by $37,800. 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 profits by Required 2 >

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 $5,400. Marketing studies indicate that such a campaign would increase sales in the Medical market by $43,200 or increase sales in the Dental market by $37,800. 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 Dental Market? Company's profits by < Required 1 Required 3 >

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 $5,400. Marketing studies indicate that such a campaign would increase sales in the Medical market by $43,200 or increase sales in the Dental market by $37,800. 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 2 Required 3 In which of the markets would you recommend that the company focus its advertising campaign? Medical Dental Required 1 < Required 2