Rustic 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 $15,000 for space. At the show, Rustic 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.

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Rustic 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 $15,000 for space. At the show, Rustic 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 $60,000 over the next year as a result of the exhibit. For the previous year, profit was as follows:

Revenue$350,000
Less:
Design supplies$35,000
Salary of Samantha Spade (owner)130,000
Salary of Kim Bridesdale (full-time employee)58,000
Rent36,000
Utilities7,000
Depreciation of office equipment4,000
Printing of advertising materials1,000
Advertising in Middleton Journal3,000
Travel expenses other than depreciation of autos17,500
Depreciation of company cars10,000301,500
Net income$48,500


Assume that design supplies and travel other than depreciation are variable costs.

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.)

Company profit will ( decrease or increase) by $


Should the company exhibit at the home show?

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