User Account

All Pages

Calculate the impact of the exhibit on company profit

Assignment Help Financial Accounting
Reference no: EM132913749

Question - 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) - $2,200

Depreciation of company cars - 9,000

Required - Calculate the impact of the exhibit on company profit.

Reference no: EM132913749

Questions Cloud

Licensure guarantee quality service to young children : Does licensure guarantee quality service to young children? and the reasons for your conclusion.
Compute the measure of £ credited : BROAD Bank, Amsterdam, needs to buy ' 25 million against £ for subsidizing their Nostro record. Compute the measure of £ credited
General information and logistics for curriculum night : Create a newsletter to invite the families to the curriculum night that: Explains the general information and logistics for the curriculum night.
State the limitations of financial accounting : "Financial accounting treats costs very broadly while the cost accounting does this in much greater detail" Explain this statement
Calculate the impact of the exhibit on company profit : Infinity Designs, an interior design company, The exhibit will cost the company $12,000 for space. Calculate the impact of the exhibit on company profit
Jacob mom is so difficult to communicate with : Your co-teacher tells you, "Jacob's mom is so difficult to communicate with. She just doesn't care about his education."
Enhancing the student experience : Providing quality and equality for students in higher education is a worldwide goal.
Court life complete with costumes and props : This included the codification of the five ballet positions and the outrageous mannerism and affectations of court life complete with costumes and props.
Comprehensive and integrated math curriculum : How can early math standards be used to develop a comprehensive and integrated math curriculum

Reviews

Write a Review

Financial Accounting Questions & Answers

  Calculate return on equity for sears and wal-mar

Calculate return on equity (ROE) for Sears and Wal-Mart in fiscal 2002. Disaggregate ROE using the DuPont Model and show that ROE = Net Profit Margin

  Discuss the pros and cons of the consultant proposal

Could the consultant have made the proposal for reasons that aren't in Wilson's best interest? Could the consultant be well meaning yet biased? Explain.

  What is the essence of the discounted cash flow methods

Capital budgeting has the same focus as accrual accounting.” Do you agree or disagree? Explain. Give a brief description of what capital budgeting is. What is the essence of the discounted cash flow methods?

  What the capitalized cost of the land was

What The capitalized cost of the land was? A plot of land was purchased for $120,000 and had $10,000 of past due property taxes on it.

  Prepare the journal entries necessary to account

Blapper., purchased 10% of Nicks Enterprises for $1,000,000 on January 1, 2013. Nicks recognized a total of $440,000 net income during 2013, paid $40,000 of dividends to Blapperduring 2013, and at December 31, 2013, the market value of the Nicks inve..

  Compute for the unadjusted balance of the home office

Compute for the unadjusted balance of the Home Office Current account. The branch accountant recorded a merchandise worth P245,000 as P254,000.

  Determine the outstanding checks at august

REQUIRED- Determine the following: Outstanding checks at August 31, 2016. Deposits in transit at July 31, 2016

  Statements about journal entries to record variances

Which of the following statements about journal entries to record variances is true?

  Competitor ratios-industry ratios-standards-trends

Describe the company and its operations. Perform a SWOT Analysis Analyze the financial statements using 3 years (2 if unavailable) using ratios of debt, liquidity, profitability, investing (e.g. EPS, P/E, etc.), and failure forecasting. Look at commo..

  Considering accepting an order from an overseas customer

A manager of Burns Sporting Goods Company is considering accepting an order from an overseas customer. This customer has requested an order for 200,000 dozen golf balls at a price of $22 per dozen. The variable cost to manufacture a dozen golf balls ..

  The amount she had previously identified as bad debt

Last year, Jane identified $66,400 as a nonbusiness bad debt. In that tax year before considering the tax implications of the nonbusiness bad debt, Jane had $132,800 of taxable income, of which $6,640 consisted of short-term capital gains. This year,..

  Discuss the importance of both liquidity and profitability

Discuss the importance of both liquidity and profitability with regards to working capital management of current assets and liabilities in your discussion.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd