Calculate the impact of the exhibit on company profit. Show less

Infinity Designs an interior design company has experienced a drop in business due to an increase Show more 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 $12000 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 $36000 over the next year as a result of the exhibit. For the previous year profit was as follows: Revenue $201000 Less: Design supplies (variable cost) $15000 Salary of Samantha Spade (owner) 80000 Salary of Kim Bridesdale (full time employee) 55000 Rent 18000 Utilities 6000 Depreciation of office equipment 3600 Printing of advertising materials 700 Advertising in Middleton Journal 2500 Travel expenses other than depreciation of autos (variable cost) $3000 Depreciation of company cars 9000 Required: Calculate the impact of the exhibit on company profit. Show less

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