Refer to the data in Exercise 12-11. Assume that Dallas' sales by major market are as follows:

The company would like to initiate an intensive advertising campaign in one of the two markets during the next month. The campaign would cost $8,000. Marketing studies indicate that such a campaign would increase sales in the construction market by $70,000 or increase sales in the landscaping market by $60,000.
Required:
1. In which of the markets would you recommend that the company focus its advertising campaign?
Show computations to support your answer.
2. In Exercise 12-11, Dallas shows $90,000 in traceable fixed expenses. What happened to the $90,000 in this exercise?

Data from Exercise 12-11

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Market Dallas Cllents Clients Sales Variable expenses Contribution margin Traceable fixed expenses Market segment margin Common fixed expenses $600,000 100% $400,000 100% $200,000 100% 260,000 65 140,000 35 20,000 5 168,000 28 $120,000 30% $48,000 24% 360,000 60 240,000 40 72.000 12 100,000 50 100,000 50 52,000 26 not traceable to markets 18,000 3 Office segment margin $150,000 25%