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View Policies Current Attempt in Progress Sipacore Interiors, an interior design company, has experienced a drop in business due to an increase in interest rates
View Policies Current Attempt in Progress Sipacore 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 $ 14,920 for space. At the show. Sipecore 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 $ 40,300 over the next year as a result of the exhibit. For the previous year, profit was as follows: Revenue $ 214,460 Less: Design supplies $ 17.984 Salary of Samantha Spade (owner) 82.407 Salary of Kim Bridesdale (full-time employee) 55.648 Rent 19.041 Utilities 6.410 Depreciation of office equipment 3,700 Printing of advertising materials 728 Advertising in Middleton Journal 2.870 Travel expenses other than depreciation of autos 3,090 Depreciation of company cars 10.210 202.088 Net income $ 12.372 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 O decimal places, e.g. 125.) Company profit will by Should the company exhibit at the home show? The company exhibit at the home show. Save for Later Attempts: 0 of 1 used Submit
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