80.2K

Verified Solution

Link Copied!

5 1.16 points 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: Market Minneapolis Medical Dental Sales $420,000 $ 280,000 100% $ 140,000 100% $ 100% Variable expenses 252,000 182,000 60% 65% 70,000 50% 02:42:43 Skipped eBook 168,000 40% 50% References Contribution margin Traceable fixed expenses 98,000 35% 14,000 5% 70,000 36,400 50,400 12% 26% Market segment margin 117,600 28% $ 84,000 30% $33,600 24% Common fixed expenses not traceable to markets 12,600 3% 105,000 Office segment margin $ 25% 5 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 $5,600. Marketing studies indicate that such a campaign would increase sales in the Medical market by $49,000 or increase sales in the Dental market by $42,000. 1.16 points 8 Required: 1-a. Calculate the increased segment margin. 02:42:20 Skipped Medical Dental eBook Increased segment margin References 1-b. In which of the markets would you recommend that the company focus its advertising campaign? Medical Dental

Answer & Explanation Solved by verified expert

See Answer