EXERCISE 6-17 Working with a Segmented Income Statement LO6-4 Refer to the data in Exercise 6-16. Assume that Minneapolis' sales by major market are Market Medical Dental Minneapolis $200,000 180,000 60% 128,000 64% 52,000 $100,000 100% 100% Sales $300,000 . . . 120,000 40% 72,000 36% 12,000 6% 48,000 48% 21,000 20, 11% 33,000 87,000 29% $60,000 30%7,000 15,000 5% Common fixed expenses not traceable to markets........... Office segment margin.. $72,000 24% The company would like to initiate an intensive advertising campaign in one of the two marke segments during the next month. The campaign would cost $5,000. Marketing studies indicatetha such a campaign would increase sales in the Medical market by $40,000 or increase sales in the Dental market by $35,000. Variable Costing and 3ey Required 1. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market? How much would the company's profits increase (decrease) if it implemented the advertising 2. campaign in the Dental Market? campaign? the $48,000 in this exercise? 3. In which of the markets would you recommend that the company focus its advertising 4. In Exercise 6-16, Minneapolis shows $48,000 in traceable fixed expenses. What happened to