OakInteriors, 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 $14,910for space. At the show,OakInteriors 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 $39,790over the next year as a result of the exhibit. For the previous year, profit was as follows:

Revenue

$213,128

Less:

Design supplies

$18,032

Salary of Samantha Spade (owner)

81,225

Salary of Kim Bridesdale (full-time employee)

56,086

Rent

19,063

Utilities

6,570

Depreciation of office equipment

3,700

Printing of advertising materials

848

Advertising inMiddleton Journal

2,730

Travel expenses other than depreciation of autos

3,190

Depreciation of company cars

10,090

201,534

Net income

$11,594

Assume that design supplies and travel other than depreciation are variable costs.

Question:

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 willselect an option_____________( increase or decrease) ,byenter a dollar amount_______________.

Should the company exhibit at the home show?

The companyselect an option___________?

should

should not

exhibit at the home show.