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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
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 $ 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 $ 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
Required:
Calculate the impact of the exhibit on company profit.
Round to two decimal places.
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