Current Attempt in Progress

MarxInteriors, 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 $14,990for space. At the show,MarxInteriors 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 $40,020over the next year as a result of the exhibit. For the previous year, profit was as follows:

Revenue $213,151

Less:

Design supplies $17,922

Salary of Samantha Spade (owner) $81,323

Salary of Kim Bridesdale (full-time employee) $55,550

Rent $18,912

Utilities $6,810

Depreciation of office equipment $3,660

Printing of advertising materials $871

Advertising inMiddleton Journal $2,740

Travel expenses other than depreciation of autos $3,140

Depreciation of company cars $10,330 $201,258

Net income $11,893

Assume that design supplies and travel other than depreciation are variable costs.

Calculate the impact of the exhibit on company profit.(Round intermediate calculations to 4 decimal places, e.g. 0.3215 and final answer to 0 decimal places, e.g. 125.)

Company profit will

select an option

increase or decrease

by_$_________enter a dollar amount

Should the company exhibit at the home show?

should or should not

exhibit at the home show.