Need business ad finance help to calculate the impact of the exhibit on company profit.
| Infinity Designs, 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 Home and Garden Expo. The exhibit will cost the company $12,000 for space. At the show, Infinity Designs will present a slide show on a PC, pass out brochures that are printed previously, (the company printed more than needed), and show its portfolio of previous |
| jobs. |
| The company estimates that revenue will increase by $36,000 over the next year as a result of the exhibit. For the previous year, profit was as follows: |
| Revenue | $201,000 |
| Less: | |
| Design supplies (variable cost) | $16,000 |
| Salary of Samantha Spade (owner) | 80,000 |
| Salary of Kim Bridesdale (full time employee) | 55,000 |
| Rent | 18,000 |
| Utilities | 6,000 |
| Depreciation of office equipment | 3,600 |
| Printing of advertising materials | 700 |
| Advertising in Middleton Journal | 2,500 |
| Travel expenses other than depreciation of autos (variable cost) | $2,600 |
| Depreciation of company cars | 9,000 |
| Required: | |
| Calculate the impact of the exhibit on company profit. |
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