Rarer, Harris, & Chan is a consulting firm that specializes in information syste

Question

Rarer, 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: 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 $6,400. Marketing studies indicate that such a campaign would increase sales in the Medical market by $56,000 or increase sales in the Dental market by $48,000. Required: 1-a. Calculate the increased segment margin. 1-b. In which of the markets would you recommend that the company focus its advertising campaign? Medical Dental

Explanation / Answer

Answer:1-a

Answer:1-b Dental

Particulars Medical Dental Increase in segment margin 13200 17600

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