Reference no: EM132913749

Question - 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) - $2,200

Depreciation of company cars - 9,000

Required - Calculate the impact of the exhibit on company profit.