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AI Required information 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 Required 1 $ 300,000 180,000 120,000 33,000 87,000 15,000 $ 72,000 Complete this question by entering your answers in the tabs below. Required 2 Required 3 100% 60% 40% 118 298 58 248 Medical $ 200,000 128,000 72,000 12,000 $ 60,000 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 $5,000. Marketing studies indicate that such a campaign would increase sales in the Medical market by $40,000 or increase sales in the Dental market by $35,000. Market 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? 100% 648 36% 68 30% Dental 100% $ 100,000 52,000 528 48% 48,000 218 21,000 $ 27,000 278

AI Required information 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 Required 1 $ 300,000 180,000 120,000 33,000 87,000 15,000 $ 72,000 Complete this question by entering your answers in the tabs below. Required 2 Required 3 100% 60% 40% 118 298 58 248 Medical $ 200,000 128,000 72,000 12,000 $ 60,000 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 $5,000. Marketing studies indicate that such a campaign would increase sales in the Medical market by $40,000 or increase sales in the Dental market by $35,000. Market 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? 100% 648 36% 68 30% Dental 100% $ 100,000 52,000 528 48% 48,000 218 21,000 $ 27,000 278

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...
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Required information SB Exercise 6-16 through Exercise 6-17 (Static) [The following information applies to the questions displayed below.] Raner, Harris and 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: Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income Total Company Assume that Minneapolis' sales by major market are: $ 450,000 225,000 225,000 126,000 99,000 63,000 $ 36,000 100% 50% 50% 28% 22% 14% 8% Chicago $ 150,000 45,000 105,000 78,000 $ 27,000 Exercise 6-17 (Static) Working with a Segmented Income Statement [LO6-4] Office 100% 30 % 70% 52% 18% Minneapolis $ 300,000 180,000 120,000 48,000 $ 72,000 100% 60% 40% 16% 24%
Transcribed Image Text:Required information SB Exercise 6-16 through Exercise 6-17 (Static) [The following information applies to the questions displayed below.] Raner, Harris and 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: Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income Total Company Assume that Minneapolis' sales by major market are: $ 450,000 225,000 225,000 126,000 99,000 63,000 $ 36,000 100% 50% 50% 28% 22% 14% 8% Chicago $ 150,000 45,000 105,000 78,000 $ 27,000 Exercise 6-17 (Static) Working with a Segmented Income Statement [LO6-4] Office 100% 30 % 70% 52% 18% Minneapolis $ 300,000 180,000 120,000 48,000 $ 72,000 100% 60% 40% 16% 24%
1 Required information **** 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 : Required 1 Minneapolis $ 300,000 180,000 120,000 33,000 87,000 15,000 $ 72,000 Complete this question by entering your answers in the tabs below. Required 2 Required 3 100% 60% 40% 11% 298 5% 248 Medical $ 200,000 128,000 72,000 12,000 $ 60,000 Market 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 $5,000. Marketing studies indicate that such a campaign would increase sales in the Medical market by $40,000 or increase sales in the Dental market by $35,000. 100% 64% 36% 6% 30% 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? Dental 100% $ 100,000 52,000 52% 48,000 48% 21% 21,000 $ 27,000 27%
Transcribed Image Text:1 Required information **** 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 : Required 1 Minneapolis $ 300,000 180,000 120,000 33,000 87,000 15,000 $ 72,000 Complete this question by entering your answers in the tabs below. Required 2 Required 3 100% 60% 40% 11% 298 5% 248 Medical $ 200,000 128,000 72,000 12,000 $ 60,000 Market 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 $5,000. Marketing studies indicate that such a campaign would increase sales in the Medical market by $40,000 or increase sales in the Dental market by $35,000. 100% 64% 36% 6% 30% 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? Dental 100% $ 100,000 52,000 52% 48,000 48% 21% 21,000 $ 27,000 27%
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