Requlred Information

SB Exercise $6-16$ through Exercise $6-17($Static$)$

$[$The following information applies to the questions displayed below.$]$

Raner, Harris and Chan is a consulting firm specializing in information systems for medical and dental clinics. The firm has

two offices$-$one in Chicago and one in Minneapolis. It 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 below:

Exerclse $6-17($Statlc$)$ WorkIng with a Segmented Income Statement $[$L$06-4]$

Assume Minneapolis's sales by major market are:

The company is planning a $$5,000$ advertising campaign next month in either the Medical or Dental market. Marketing studies indicate

this campaign would increase Medical market sales by $$40,000$ or Dental market sales by $$35,000.$

Requlred:

How much would the company's profits increase $($decrease$)$ if it advertised in the Medical market?

How much would the company's profits increase $($decrease$)$ if it advertised in the Dental market?

Should the company advertise in the Medical or Dental market?

Complete this question by entering your answers in the tabs below.

How much would the company's profits increase $($decrease$)$ if it advertised in the Medical market?