RunnerInteriors, 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 $14,870for space. At the show,RunnerInteriors 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 $40,270over the next year as a result of the exhibit. For the previous year, profit was as follows:

Revenue$212,391Less:Design supplies$17,919Salary of Samantha Spade (owner)82,415Salary of Kim Bridesdale (full-time employee)55,977Rent19,156Utilities7,540Depreciation of office equipment3,940Printing of advertising materials731Advertising inMiddleton Journal3,100Travel expenses other than depreciation of autos2,910Depreciation of company cars9,800203,488Net income$8,903

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.