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DD Interiors, an interior design company, has experienced a drop in business due to an increase in interest rates and a corresponding slowdown in remodeling

DD 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 $14,950 for space. At the show, Foress 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 $40,240 over the next year as a result of the exhibit. For the previous year, profit was as follows: Revenue $211,795 Less: Design supplies $18,035 Salary of Samantha Spade (owner) 81,934 Salary of Kim Bridesdale (full-time employee) 55,555 Rent 19,150 Utilities 7,170 Depreciation of office equipment 4,160 Printing of advertising materials 752 Advertising in Middleton Journal 3,290 Travel expenses other than depreciation of autos 3,300 Depreciation of company cars 9,370 202,716 Net income $9,079 Assume that design supplies and travel other than depreciation are variable costs. Calculate the impact of the exhibit on company profit. (Round intermediate calculations to 4 decimal places, e.g. 0.3215 and final answer to 0 decimal places, e.g. 125.) Company profit will select an option by enter a dollar amount Should the company exhibit at the home show? The company select an option exhibit at the home show.

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