Answer Q2, thank you

margin ratio has changed. How do EXERCISE 7-17 Working with a Segmented Income Statement L07-4 Refer to the data in Exercise 7-16. Assume that Minneapolis' sales by major market are: Market Chicago Dental Sales Variable expenses. Contribution margin Traceable fixed expenses Market segment margin Common fixed expenses not traceable to markets. Office segment margin Minneapolis $300,000 100% 180.000 60% 120,000 40% 33.000 11% 87.000 29% 15.000 5 $.72.000 24 $200,000 128.000 72.000 12,000 550,000 100% 64% 36% 6% 30% $100,000 101 52.000 48,000 489 21,000 21% $ 27,000 273 The company would like to initiate an intensive advertising campaign in one of the two market segroet during the next month. The campaign would cost $5.000. Marketing studies indicate that such a campaip would increase sales in the Medical market by $40,000 or increase sales in the Dental market by 535.com 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) implemented the advertising campaign in the Dental Market? In which of the markets would you recommend that the company focus its advertising campaign? Variable Costing and Segment Reporting: Tools for Management 321 ses Anguid In Exercise 7-16. Minneapolis show $48,000 in traceable fixed expenses. What happened to the 4 $48.000 in this exercise? margin ratio has changed. How do EXERCISE 7-17 Working with a Segmented Income Statement L07-4 Refer to the data in Exercise 7-16. Assume that Minneapolis' sales by major market are: Market Chicago Dental Sales Variable expenses. Contribution margin Traceable fixed expenses Market segment margin Common fixed expenses not traceable to markets. Office segment margin Minneapolis $300,000 100% 180.000 60% 120,000 40% 33.000 11% 87.000 29% 15.000 5 $.72.000 24 $200,000 128.000 72.000 12,000 550,000 100% 64% 36% 6% 30% $100,000 101 52.000 48,000 489 21,000 21% $ 27,000 273 The company would like to initiate an intensive advertising campaign in one of the two market segroet during the next month. The campaign would cost $5.000. Marketing studies indicate that such a campaip would increase sales in the Medical market by $40,000 or increase sales in the Dental market by 535.com 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) implemented the advertising campaign in the Dental Market? In which of the markets would you recommend that the company focus its advertising campaign? Variable Costing and Segment Reporting: Tools for Management 321 ses Anguid In Exercise 7-16. Minneapolis show $48,000 in traceable fixed expenses. What happened to the 4 $48.000 in this exercise