Reference no: EM132584565
The exhibit will cost the company $12,000 for space. 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)$15,000
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)$2,800
Depreciation of company cars9,000
Question 1: Calculate the impact of the exhibit on company profit.