Question: gin Pato! EXERCISE 6-17 Working with a Segmented Income Statement (L06-4) Refer to the data in Exercise 6-16. Assume that Minneapolis' sales by major market
gin Pato! EXERCISE 6-17 Working with a Segmented Income Statement (L06-4) Refer to the data in Exercise 6-16. Assume that Minneapolis' sales by major market are: $200,000 128,000 Medical 100% 6496 72,000 Minneapolis $300,000 100% 180,000 6096 120,000 4096 33,000 1196 87.000 29% 5% $ 72,000 24% Sales ... Variable expenses ........ Contribution margin ......... Traceable fixed expenses .... Market segment margin Common fixed expenses not traceable to markets... Office segment margin .. Market Dental $100,000 100% 52,000 52% 36% 48,000 48% 6% 21,000 30% $ 27,000 27% 21% 12,000 $ 60,000 15,000 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 $5,000. Marketing studies indicate that such a campaign would increase sales in the Medical market by $40,000 or increase sales in the Dental market by $35,000. Required: 1. In which of the markets would you recommend that the company focus its advertising cam paign? Show computations to support your
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