Incremental Analysis (1).xlsx - Rustic Interiors, an...

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$12,000jobs.The company estimates that revenue will increase by$36,000of the exhibit. For the previous year, profit was as follows:Revenue$201,000Less:Design supplies$15,000Salary of Samantha Spade (owner)80,000Salary of Kim Bridesdale (full time empl55,000Rent18,000Utilities6,000Depreciation of office equipment3,600Printing of advertising materials700Advertising in Middleton Journal2,500Travel expenses other than depreciation2,000Depreciation of company cars9,000191,800Net income$9,200Required:Rustic Interiors, an interior design company, has experienced a drop in business due toan increase in interest rates and a corresponding slowdown in remodeling projects. Tostimulate business, the company is considering exhibiting at the Middleton Home andGarden Expo. The exhibit will cost the companyfor space. At the show, Rustic Interiors will present a slide show on a PC,pass out brochuresthat are printed previously, (the company printed more than needed), and show itsportfolio of previousover the next year as aresultCalculate the impact of the exhibit on company profit. Should the company exhibit at thehome show?

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Term
Fall
Professor
Claudia Müller
Tags
Walt Bradley, interior design company, Kerry Park, new england investments

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