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Paver Interiors, an interior design company, has experienced a drop in business due to an increase in interest rates and a corresponding slowdown in remodeling
Paver 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 $14,900 for space. At the show, Paver 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 $39,620 over the next year as a result of the exhibit. For the previous year, profit was as follows: Revenue $210,723 Less: Design supplies $17,861 Salary of Samantha Spade (owner) 82.523 Salary of Kim Bridesdale (full-time employee) 55,564 Rent 18,875 Utilities 7,520 Depreciation of office equipment 4,010 Printing of advertising materials 810 Advertising in Middleton Journal 2.830 Travel expenses other than depreciation of autos 2,820 Depreciation of company cars 10,550 203,363 Net income $7,360Assume 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 fina 0 decimal places, e.g. 125.) Company profit will by Should the company exhibit at the home show? The company exhibit at the home show
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