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Required 1 Required 2 Required 3 How much would the company's profits Increase (decrease) if it implemented the advertising campaign in the Medical Market? Company's profits Required 1 Required 2 > Required 1 Required 2 Required 3 How much would the company's profits Increase (decrease) If it implemented the advertising campaign in the Dental Market? Company's profits by Exercise 7-17 Working with a Segmented Income Statement (L07-4) 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. A contribution format segmented income statement for the company's most recent year is given: Assume that Minneapolis' sales by major market are: Sales Variable expenses Contribution margin Traceable fixed expenses Market segment margin Common fixed expenses not traceable to markets office segment margin Market Minneapolis Medical Dental $690,000 1004 $460,000 1008 $230,000 1000 414,000 600 299,000 656 115,000 500 276,000 40V 161,000 35% 115,000 508 82.800 124 23,000 56 59,800 193,200 284 $138.000 308 $ 55,200 249 264 20,700 $172,500 31 256 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 $9,200. Marketing studies indicate that such a campaign would increase sales in the Medical market by $80,500 or increase sales in the Dental market by $69.000

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