Answer Q3

margin ratio has changed. Ho 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 Dental Chicago $200,000 100% 128.000 64% 72.000 36% 12,000 6% $ 60,000 30% Minneapolis $300,000 100% 180,000 60% 120.000 40% 33,000 11% 87.000 29% 15,000 5% $ 72.000 24% $100,000 100% 52,000 52% 48.000 48% 21.000 21% $ 27,000 27% Sales. Variable expenses Contribution margin Traceable fixed expenses Market segment margin.. Common fixed expenses not traceable to markets. Office segment margin 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 $5,000. Marketing studies indicate that such a campaign would increase sales in the Medical market by S40,000 or increase salcs is the Dental market by $35,000 orting Tools to Management 121 3 How much would the company's profits increase (decrease implemented the writing How much would the company's profits increase (decreases implemented the advertising campaign in the Medical Market In Exercise 7-16. Minneapolis shows $48.000 in traceable fixed expenses. What happened to the in which of the markets would you recommend that the company focus is wvertising campaign cumpulan in the Dental Market S48,000 in this exercise