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 Minneapolis $ 348,000 208,800 139,200 38,280 100,920 17,400 $ 83,520 100.00% 60.00% 40.00% 11.00% 29.00% 5.00% 24.00% Market 100.00% $ 116,000 64.00% 36.00% 6.00% Medical $ 232,000 148,480 83,520 13,920 $ 69,600 Dental 60,320 55,680 24,360 30.00% $ 31,320 100.00% 52.00% 48.00% 21.00% 27.00% 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 $5,800. Marketing studies indicate that such a campaign would increase sales in the Medical market by $46,400 or increase sales in the Dental market by $40,600. 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?

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