PageInteriors, 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,PageInteriors 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 $40,330over the next year as a result of the exhibit. For the previous year, profit was as follows:

Revenue$212,366

Less:Design supplies$18,080

Salary of Samantha Spade (owner)81,427

Salary of Kim Bridesdale (full-time employee)55,659

Rent19,035

Utilities6,870

Depreciation of office equipment3,780

Printing of advertising materials799

Advertising inMiddleton Journal2,780

Travel expenses other than depreciation of autos2,950

Depreciation of company cars10,630

202,010

Net income$10,356

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

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 will

select an option

increase

decrease

by

enter a dollar amount

Should the company exhibit at the home show?

The company

select an option

should

should not

exhibit at the home show