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)

$2,600

Depreciation of company cars $9,000

Required:

Calculate the impact of the exhibit on company profit.