Required information SB Exercise 7-16 through Exercise 7-17 (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 office Minneapolis $ 333,000 100% 199,800 60% 133,200 40% Total Company $ 499,500 249,750 50% 249,750 50% 139,860 281 109,890 22 69,930 148 100% Chicago $ 166,500 100% 49,950 309 116,550 70% 86,580 $ 29,970 524 184 $ 79,920 241 Contribution margin Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income $ 39,960 85 53,280 16 Exercise 7-17 (Algo) Working with a Segmented Income Statement [LO7-4] 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 Marke Minneapolis Medical Dental $ 333,000 100% 199,800 60% 133,200 40% 36,630 114 F 222,000 100% 142,080 641 79,920 368 13,320 68 $ 111,000 100% 57,720 52 53,280 48% 23,310 21 96,570 291 16,650 51 $ 66,600 30% $ 29,970 27 $ 79,920 24 % 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 $5,550. Marketing studies indicate that such a campaign would increase sales in the Medical market by $44,400 or increase sales in the Dental market by $38,850. Required: