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Tri Town Interiors, an interior design company, has experienced a drop in business due to an increase in interest rates and a corresponding slowdown in

Tri Town 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 $14,980 for space. At the show, Tri Town 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 $40,060 over the next year as a result of the exhibit. For the previous year, profit was as follows:

Revenue $213,615

Less:

Design supplies $18,106

Salary of Samantha Spade (owner) 81459

Salary of Kim Bridesdale (full-time employee) 56,285

Rent 18811

Utilities 6,570

Depreciation of office equipment 4,000

Printing of advertising materials 812

Advertising in Middleton Journal 3,080

Travel expenses other than depreciation of autos 2,890

Depreciation of company cars 9,930. (201,943)

Net income $11,672

Assume not design supplies in trouble other than depreciation are variable cost.

Company profit will ______(increase/decrease) by ______

should the company exhibit at the home show? Yes or no

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