Refer to the data in Exercise 12 13. Assume that Minneapolis’ sales by major market are:
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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.
Required:
1. In which of the markets would you recommend that the company focus its advertising campaign? Show computations to support your answer.
2. In Exercise 12—13, Minneapolis shows $48,000 in traceable fixed expenses. What happened to the $48,000 in thisexercise?