Rustic Interiors, an interior design company has experienced

| April 14, 2018

Rustic Interiors, an interior design company has experienced a drop in business do 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 $15,000 for space. At the show, Rustic 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 $40,000 over the next year as a result of the exhibit. For the previous year, profit was as follows:Revenue $212,500Less:Design supplies $18,000Salary of Samantha Spade (owner) 82,000Salary of Kim Bridesdale (full-time employee) 56,000Rent 19,000 Utilities 7,000Depreciation of office equipment 4,000Printing of advertising materials 800Advertising in Middleton Journal 3,000Travel expenses other than depreciation of autos 3,000Depreciation of company cars 10,000 202,800Net income $9,700Question: calculate the impact of the exhibit on company profit. Should the company exhibit at the home show?

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