Please Solve All parts Exercise 6-17 Working with a Segmented Income Statement [

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Please Solve All parts

Exercise 6-17 Working with a Segmented Income Statement [L06-4] 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 Market Minneapolis Medical Dental Sales Variable expenses Contribution margin Traceable fixed expenses Market segment margin Common fixed expenses not traceable to markets Office segment margin $690,000 100% $460,000 100% $230,000 100% 414,000 68% 299,000 65% 115,000 5e% 276,000 40% 161,000 35% 115,000 50% 82,800 12% 23,000 5% 59,800 26% 193,200 28% $138,004 30% $55,204 24% 20,700 $172,500 25% 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 Required: 1. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market? 2. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Dental Market? 3. In which of the markets would you recommend that the company focus its advertising campaign? Complete this question by entering your answers in the tabs below Required1 Required 2 Required 3 How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market? ompany's Required1 Required 2>

Explanation / Answer

Solution -1: - $18,975

Solution -2: $25,300

Solution -3: Dental Market

Since the company will higher profit in Dental market by launching its campaign, Campaign should be launched For Dental Segment.

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