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Infinity Designs, an interior design company, has experienced a drop in business due to an

Infinity Designs, an interior design company, has experienced a drop in business due to an

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)

$15,500

 

   

 

 

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)

$3,000

 

   

 

 

Depreciation of company cars

9,000

 

   

 

 

 

 

 

   

 

   

Required:

   

Calculate the impact of the exhibit on company profit.

   

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                       

 

Abhinav 04-Dec-2019

Answer (UnSolved)

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