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 previousjobs.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$201,000Less:Design supplies (variable cost)$16,500Salary of Samantha Spade (owner)80,000Salary of Kim Bridesdale (full time employee)55,000Rent18,000Utilities6,000Depreciation of office equipment3,600Printing of advertising materials700Advertising in Middleton Journal2,500Travel expenses other than depreciation of autos (variable cost)$2,000Depreciation of company cars9,000Required:Calculate the impact of the exhibit on company profit.<\/p>
Round to two decimal places.<\/p>
Your Answer:<\/p>", "transcribed_text": "", "related_book": { "title": "Accounting Principles", "isbn": "1119491630, 978-1119491637, 978-0470534793", "edition": "10th Edition", "authors": "Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/54.jpg", "uri": "\/textbooks\/accounting-principles-10th-edition-54", "see_more_uri": "" }, "free_related_book": { "isbn": "006250925X", "uri": "\/textbooks\/the-womans-encyclopedia-of-myths-and-secrets-1st-edition-9780062509253", "name": "The Womans Encyclopedia Of Myths And Secrets", "edition": "" }, "question_posted": "2024-06-29 02:30:06", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/let-g-v-e-be-directed-graph-in-which-each-vertex", "description": "Let G = (V, E) be a directed graph in which each vertex u V is labeled with a unique integer L(u) from the set {1, 2,..., |V|}. For each vertex u V, let R(u) = (v V : u v) be the set of vertices...", "stars": 3 }, { "url": "\/study-help\/psychology-2e\/describe-haless-and-whytts-contributions-to-reflex-theory-1985129", "description": "Describe Haless and Whytts contributions to reflex theory.", "stars": 3 }, { "url": "\/a-process-consists-of-five-perfectly-stirred-tanks-in-series", "description": "A process consists of five perfectly stirred tanks in Series. The volume in each tank is 30 L, and the volumetric flow rate through the system is 5 L\/min. At some particular time, the inlet...", "stars": 3.5 }, { "url": "\/study-help\/questions\/assume-purchase-price-of-the-land-real-estate-commission-9862597", "description": "Assume Purchase price of the land Real estate commission (%) of the purchase price Demolition of old building on site Sale of scrap from old building Construction cost of the new building Land survey...", "stars": 3.5 }, { "url": "\/study-help\/questions-and-answers\/multiple-choice-questions-1-which-of-the-following-internal", "description": "Multiple Choice Questions: 1) Which of the following internal business perspective key performance indicators (KPIs) is commonly used to assess the innovation process? A) Number of new products...", "stars": 3 }, { "url": "\/study-help\/questions\/problem-1-adapted-abigail-corporation-is-a-distributor-of-a-3415618", "description": "Problem 1 (adapted) Abigail Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below: Selling Price P25 per unit Variable expense P15...", "stars": 3 }, { "url": "\/study-help\/questions\/you-have-to-choose-from-the-give-4-optionsaccounts-payableaccounts-1587164", "description": "you have to choose from the give 4 optionsaccounts payableaccounts receivableadvertising expensecash Machinery and Equipment Repair Service is owned by William Giese. Use the above figures to prepare...", "stars": 3 }, { "url": "\/study-help\/questions\/view-policies-current-attempt-in-progress-the-current-sections-of-1887711", "description": "View Policies Current Attempt in Progress The current sections of Sunn Inc's balance sheets at December 31, 2021 and 2022, are presented here. Sunn's net income for 2022 was $153,000. Depreciation...", "stars": 3 }, { "url": "\/study-help\/questions\/two-factories-i-and-ii-produce-phones-for-brand-abc-3420803", "description": "Two factories I and II produce phones for brand ABC. Factory I produces 60% of all ABC phones and Factory II produces 40%. 10% of the phones from Factory I are defective, and 20% of those produced by...", "stars": 3 }, { "url": "\/study-help\/questions\/at-the-beginning-of-the-year-sandhill-company-had-total-2031854", "description": "At the beginning of the year, Sandhill Company had total assets of $883,000 and total liabilities of $368,000. Answer the following questions. (a) If total assets increased $151,000 during the year...", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/selection-type-adams-company-is-a-manufacturing-company-that-has-4448905", "next": "\/study-help\/questions\/joint-cost-3000000-2000000-500000-idr-550000000-4448907" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": "Infinity Designs, an interior design company, has experienced a drop in business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/infinity-designs-an-interior-design-company-has-experienced-a-drop-4448906" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } }} }