? ? Raner, Harris & Chan is a consulting firm that specializes in information systems for medical
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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: Assume 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 14,400 $120,000 Medical Dental 100% $480,000 100% $320,000 100% $160,000 288,000 60% 208,000 65% 80,000 50% 192,000 40% 112,000 35% 80,000 50x 57,600 12% 16,000 5% 41,600 134,400 28% $ 96,000 30% $38,400 26% 24% 3% 25% Market 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 $6.400. Marketing studies indicate that such a campaign would increase sales in the Medical market by $56,00 or increase sales in the Dental market by $48,000. 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 $6,400. Marketing studies indicate that such a campaign would increase sales in the Medical market by $56,000 or increase sales in the Dental market by $48,000. 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 Medical Market? Company's profits increase by Required 2 > 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: Assume 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 14,400 $120,000 Medical Dental 100% $480,000 100% $320,000 100% $160,000 288,000 60% 208,000 65% 80,000 50% 192,000 40% 112,000 35% 80,000 50x 57,600 12% 16,000 5% 41,600 134,400 28% $ 96,000 30% $38,400 26% 24% 3% 25% Market 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 $6.400. Marketing studies indicate that such a campaign would increase sales in the Medical market by $56,00 or increase sales in the Dental market by $48,000. 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 $6,400. Marketing studies indicate that such a campaign would increase sales in the Medical market by $56,000 or increase sales in the Dental market by $48,000. 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 Medical Market? Company's profits increase by Required 2 >
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Increose in companys porofit 1 56000 x 35 640o 19 600 6400 ... View the full answer
Related Book For
Financial Accounting
ISBN: 978-0133427530
10th edition
Authors: Walter Harrison, Charles Horngren, William Thomas
Posted Date:
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