Reference no: EM132620325

Marshall 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, Marshall 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:

Design supplies $18,160

Salary of Samantha Spade (owner) $81,382

Salary of Kim Bridesdale (full-time employee) $56,519

Rent $18,979

Utilities $6,580

Depreciation of office equipment $4,240

Printing of advertising materials $841

Advertising in Middleton Journal $2,940

Travel expenses other than depreciation of autos $3,090

Depreciation of company cars $9,370

Net income $10,219

Question 1: Calculate the impact of the exhibit on company profit. (Round intermediate calculations to 4 decimal places, e.g. 0.3215 and final answer to 0 decimal places, e.g. 125.)