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Uli Interiors, an interior design company, has experienced a drop in business due to an increase in interest rates and a corresponding slowdown in remodeling
Uli 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 $14,890 for space. At the show, Uli 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 $40,360 over the next year as a result of the exhibit. For the previous year, profit was as follows: Revenue $212,320 Less: \begin{tabular}{|c|c|c|} \hline Design supplies & $18,160 & \\ \hline Salary of Samantha Spade (owner) & 81,382 & \\ \hline Salary of Kim Bridesdale (full-time employee) & 56,519 & \\ \hline Rent & 18,979 & \\ \hline Utilities & 6,580 & \\ \hline Depreciation of office equipment & 4,240 & \\ \hline Printing of advertising materials & 841 & \\ \hline Advertising in Middleton Journal & 2,940 & \\ \hline Travel expenses other than depreciation of autos & 3,090 & \\ \hline Depreciation of company cars & 9,370 & 202,101 \\ \hline Net income & & $10,219 \\ \hline \end{tabular} 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 by Should the company exhibit at the home show? The company exhibit at the home show
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