Duffy DogInteriors, 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 $15,150for space. At the show,Duffy DogInteriors 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 $39,990over the next year as a result of the exhibit. For the previous year, profit was as follows:

Revenue $214,624

Less:

Design supplies $18,059

Salary of Samantha Spade (owner) 82,377

Salary of Kim Bridesdale (full-time employee) 55,607

Rent 18,822

Utilities 6,840

Depreciation of office equipment 3,860

Printing of advertising materials 843

Advertising inMiddleton Journal 2,970

Travel expenses other than depreciation of autos 2,970

Depreciation of company cars 10,850 203,198

Net income $11,426

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 willincrease or decrease by .

select an option

Should the company exhibit at the home show?

The companyshould or should notexhibit at the home show.