How to solve the impact of the exhibit on company profit

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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.

Reference no: EM132584565

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