value 1.00 points Exercise 5-17 Working with a Segmented Income Statement [LO5-4] 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 Assume that Minneapolis' sales by major market are Minneapolis Medical Dental Sales Variable expense Contribution margin Traceable fixed expenses Market segment margin Common fixed expenses not traceable to markets Office segment margin S 870,000 522,000 348,000 104,400 243,600 100% $ 580,000 100% $ 290,000 100% 65% 35% 60% 40 % 12% 377.000 203,000 29,000 28% $ 174,000 145,000 145,000 75,400 69,600 60% 60% 26 % 24 % 30 % s 3% 25% 26.100 S 217,500 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 $11,600. Marketing studies indicate that such a campaign would increase sales in the Medical market by $101,500 or increase sales in the Dental market by $87,000 Required: 1-a. Calculate the increase in the segment margin Medical Dental Increase in the segment margin 1-b. In which of the markets would you recommend that the company's Minneapolis office focus its advertising campaign? O Medical Dental References eB ook & Resources Financial Statements Difficulty: 1 Easy Exercise 5-17 Working with a Segmented Learning Objective: 05-04 Prepare a segmented income