Question: Current Attempt in Progress Ull Interiors, an interior design company has experienced a drop in business due to an increase in interest rates and a
Current Attempt in Progress Ull 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 $ 14,890 for space. At the show, Ull 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 $ 40,360 over the next year as a result of the exhibit. For the previous year, profit was as follows: Revenue $ 212,320 Less: $ 18,160 Design supplies Salary of Samantha Spade (owner) Salary of Kim Bridesdale (full-time employee) 81382 56.519 Rent 18.979 Utilities 6,580 4,240 841 Depreciation of office equipment Printing of advertising materials Advertising in Middleton Journal Travel experes other than depreciation of autos Depreciation of company cars Net income 2,940 3,090 9,370 202.101 $ 10.219 Assume that design supplies and travel other than depreciation are variable costs. Calculate the impact of the exhibit on company proht. (Round Intermediate calculations to 4 decimal places, es 0.3215 and final aruwer to Odecimal places, s. 125) Company profit will by Should the company exhibit at the home show The company exhibit at the home show
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
