Required information SB Exercise 7-16 through Exercise 7-17 (Algo) The following information applies to the questions displayed below) 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 Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Connon fixed expenses not treceable to offices Net operating income 70 Total Company $ 498,000 100% 249,000 50% 249,000 50% 139,440 28% 109,560 22x 69,720 14% $ 39,840 8X office Chicago Minneapolis $ 176,000 100% $ 324,000 100% 52,200 30% 194,400 60% 121,800 129,600 40% 90,480 52% 51,840 10% $ 31,320 18% $ 77,760 24% Assume that Minneapolis sales by major market are: Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income 100% 52% Market Medical Dental $ 232,000 100% $ 132,000 148.480 64% 68,640 83,520 36% 63,360 13,220 6% 27.720 $ 69,600 30% $ 35,640 Minneapolis 5 324,000 100% 194,400 60% 129,600 40% 51,840 16% 77,760 24% 15,000 5% $ 62,760 19% 21% 27% 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 $13,000. Marketing studies indicate that such a campaign would increase sales in the Medical market by $56,000 or increase sales in the Dental market by $59,000. 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? 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) iFit implemented the advertising campaign in the Dental Market? Company's profits by 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 In which of the markets would you recommend that the company focus its advertising campaign? O Medical Dental