Need business and finance help to calculate the impact of the exhibit on company profit.

Nov 11th, 2015
DotaCN
Category:
Business & Finance
Price: $5 USD

Question description

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
Rent18,000
Utilities6,000
Depreciation of office equipment3,600
Printing of advertising materials700
Advertising in Middleton Journal2,500
Travel expenses other than depreciation of autos (variable cost)$3,000
Depreciation of company cars9,000



Required:

Calculate the impact of the exhibit on company profit. 

Tutor Answer

(Top Tutor) Daniel C.
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School: Cornell University
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