Required information SB Exercise 6-16 through Exercise 6-17 (Algo) The following information applies to the questions displayed below) Raner, Harris and 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: office Total company Chicago Minneapolio Balas $.517.500 100.000 $ 172,500 100.000 $ 345,000 100.000 Variable expenses 258, 250 50.000 51,750 30.000 207,000 60.000 Contribution margin 258,750 50.000 120,750 70.00 138,000 40.000 Traceable fixed expenses 144,900 28.000 89,700 52.00 55,200 16.000 office segnent margin 113,850 22.000 $ 31,050 18.000 $ 82,800 24.000 Common fixed expenses not traceable to offices 72,450 14.000 Net operating income $ 41,400 8.000 1 Help Exercise 6-17 (Algo) Working with a Segmented Income Statement [L06-4) Assume that Minneapolis' sales by major market are: Sales Variable expenses Contribution margin Traceable fixed expenses Market segment margin Common fixed expenses not traceable to markets office segment margin Minneapolis $ 345,000 100.000 207.000 60.000 138,000 40.000 37,950 11.001 100,050 29.000 Market Medical Dental $ 230,000 100.000 $ 115,000 100.000 147,200 64.005 59,800 52.000 B2,800 36.000 55,200 48.000 13,800 6.000 24,150 21.00 $ 69,000 30.00 $ 31,050 27.001 17,250 $ 82,800 5.000 24.000 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 $5.750. Marketing studies indicate that such a campaign would increase sales in the Medical market by $46,000 or increase sales in the Dental market by $40,250. Required: 1. How much would the company's profits increase (decrease) if it inplemented the advertising campaign in the Medical Market? 2. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Dental Market? 3. In which of the markets would you recommend that the company focus its advertising campaign? Complete this question by entering your answers in the tabs below. omplete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market? Company's profits by 1 Required 2 > Required: 1. 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) if it implemented the advertising campaign in the Dental Market? 3. In which of the markets would you recommend that the company focus its advertising campaign? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How much would the company's profits increase (decrease if it implemented the advertising campaign in the Dental Market? Company's profits by