Question

Cato 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 $14,980 for space. At the show, Cato 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 $40,060 over the next year as a result of the exhibit. For the previous year, profit was as follows: Revenue Less: Design supplies Salary of Samantha Spade (owner) Salary of Kim Bridesdale (full-time employee) Rent Utilities Depreciation of office equipment Printing of advertising materials Advertising in Middleton Journal Travel expenses other than depreciation of autos Depreciation of company cars Net income $213,615 $18,106 81,459 56,285 18,811 6,570 4,000 812 3,080 2,890 9,930 201,943 $11,672 Calculate the impact of the exhibit on company profit. (Round intermediate calculations to 4 decimal places, e.g. O.3215 and final answer to 0 decimal places, e.g. 125. Company profit will by Should the company exhibit at the home show? The company exhibit at the home show

Answer 1

The compano iton, design Sapptiez and -tyavel aa th ondy variable and ae akumedo ary oi neuenue. 0. 0847 Desi n Supp teev apercent of venue 13,615 46,060 en: cost f exhibit Space 4980 Pncreae in upptes $ 40,060 x0.084 3393 tav et ( 40,060 χ0.01 35) $54 pofir (40,060-/4980-3393-54) i Ynce as ein $2,146