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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 $ 7,360

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.)

Will the company's profits increase or decrease and by how much?

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