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How do I find the impact of the exhibit on company profit? Infinity Designs, an interior design company, has experienced a drop in business due
How do I find the impact of the exhibit on company profit?
Infinity Designs, 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 Home and Garden Expo. The exhibit will cost the company $12,000 for space. At the show, Infinity Designs will present a slide show on a PC, pass out brochures that are printed previously, (the company printed more than needed), and show its portfolio of previous jobs. The company estimates that revenue will increase by $36,000 over the next year as a result of the exhibit. For the previous year, profit was as follows: Revenue Less: Design supplies (variable cost) 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 (variable cost) Depreciation of company cars $201,000 $16,500 80,000 55,000 18,000 6,000 3,600 700 2,500 $2,400 9,000 How do I find the impact of the exhibit on company profit
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