Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Cato Interiors, an interior design company, has experienced a drop in business due to an increase in interest rates and a corresponding slowdown in remodeling
Cato Interiors, an interior design company, has experienced a drop in business due to an increase in interest rates and a corresponding slowdown in remodeling projects. To stimulate business, the company is considering exhibiting at the Middleton Home and Garden Expo. The exhibit will cost the company $14,980 for space. At the show, Cato Interiors will present a slide show on a laptop pass out brochures that were printed previously (the company printed more than needed), and show its portfolio of previous jobs. The company estimates that revenue will increase by $40,060 over the next year as a result of the exhibit. For the previous year, profit was as follows: Revenue Less: Design supplies Salary of Samantha Spade (owner) Salary of Kim Bridesdale (full-time employee) Rent Utilities Depreciation of office equipment Printing of advertising materials Advertising in Middleton Journal Travel expenses other than depreciation of autos Depreciation of company cars Net income $213,615 $18,106 81,459 56,285 18,811 6,570 4,000 812 3,080 2,890 9,930 201,943 $11,672 Calculate the impact of the exhibit on company profit. (Round intermediate calculations to 4 decimal places, e.g. O.3215 and final answer to 0 decimal places, e.g. 125. Company profit will by Should the company exhibit at the home show? The company exhibit at the home show
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started