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: Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income Office Total Company Chicago Minneapolis $ 535,500 267,750 100.00% 50.008 267,750 50.00% $ 178,500 53,550 124,950 100.00% 30.00% $ 357,000 214,200 100.00% 60.00% 70.00% 142,800 40.00% 149,940 28.00% 92,820 52.00% 57,120 16.00% 117,810 22.00% $ 32,130 18.00% $ 85,680 24.00% 74,970 14.00% $ 42,840 8.00% Exercise 6-17 (Algo) Working with a Segmented Income Statement [LO6-4] Assume that Minneapolis' sales by major market are: Exercise 6-17 (Algo) Working with a Segmented Income Statement [LO6-4] Assume that Minneapolis' sales by major market are: Market Minneapolis Medical Dental Sales Variable expenses Contribution margin $ 357,000 214,200 100.00% 60.00% $ 238,000 100.00% $ 119,000 100.00% 152,320 64.00% 61,880 52.00% 142,800 40.00% 85,680 36.00% 57,120 48.00% Traceable fixed expenses Market segment margin 39,270 103,530 11.00% 29.00% $ 71,400 14,280 6.00% 30.00% $ 32,130 24,990 21.00% 27.00% Common fixed expenses not traceable to markets Office segment margin 17,850 $ 85,680 5.00% 24.00% 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 $5,950. Marketing studies indicate that such a campaign would increase sales in the Medical market by $47,600 or increase sales in the Dental market by $41,650. 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