Question: Please help me solve this problem on Working with a Segmented Income Statement Exercise 6-17 Working with a Segmented Income Statement [LO6-4] Raner, Harris &

Please help me solve this problem on Working with a Segmented Income Statement

Please help me solve this problem on Working with a Segmented IncomeStatement Exercise 6-17 Working with a Segmented Income Statement [LO6-4] Raner, Harris

& Chan is a consulting firm that specializes in information systems formedical and dental clinics. The firm has two offices-one in Chicago and

Exercise 6-17 Working with a Segmented Income Statement [LO6-4] 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 Market Medical $750,000 100% $500,000 100% $.250,000 100% 450,000 68% 325,000 65% 125,000 50% 300,000 40% 175,000 35% 125,000 50% Minneapolis Dental Sales Variable expenses Contribution margin Traceable fixed expenses Market segment margin Common fixed expenses not traceable to markets Office segment margin 98,000 12% 25,000 5% 65,000 26% 218,000 28% $150,000 38% $60,000 24% 22, 500 $187,500 3% 25% 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 $10,000. Marketing studies indicate that such a campaign would increase sales in the Medical market by $87,500 or increase sales in the Dental market by $75,000

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