Question
Marshall Interiors, an interior design company, has experienced a drop in business due to an increase in interest rates and a corresponding slowdown in remodeling
Marshall 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 $15,080 for space. At the show, Marshall 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 $39,710 over the next year as a result of the exhibit. For the previous year, profit was as follows:
Revenue $214,238
Less:
Design supplies $17,943
Salary of Samantha Spade (owner) 81,482
Salary of Kim Bridesdale (full-time employee) 55,523
Rent 19,142
Utilities 6,970
Depreciation of office equipment 4,120
Printing of advertising materials 869
Advertising inMiddleton Journal 3,240
Travel expenses other than depreciation of autos 3,110
Depreciation of company cars 10,990 203,389
Net income $10,849
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 willdecrease or increase by how much $__________________?
The company Should or Should not exhibit at the home show?
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