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.
270,000
60%
195,000
65%
75,000
50%
54,000
12%
15,000
5%
39,000
26%
$90,000
30%
$36,000
24%
$112,500
25%
The company would like to initiate an intensive advertising campaign in one of the two market segmentsduring the next month. The campaign would cost $6,000. Marketing studies indicate that such a campaign would increase sales in the Medical market by $52,500 or increase sales in the Dental market by $45,000.
Determine the increase in net operating income in each market if the advertising campaign were to be initiated in that market.(Omit the "$" sign in your response.)
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