By using the mathematical formula below calculate the impact of the exhibit on c
ID: 2429717 • Letter: B
Question
By using the mathematical formula below calculate the impact of the exhibit on company profit (scroll all the way down below).
Formula-
Supplies as a percentage of Revenue = Supplies/Total Revenue
Travel as a percentage of Revenue = Travel/Total Revenue
Now:
Increase in Revenue MINUS
Cost of Exhibit Space
Increase in Supplies (Increase * Supply Percentage)
Increase in Travel (increase * Travel Percentage)
= Increase in Profit
Infinity deigns 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 Home and Garden Expo. The exhibit will cost the company $12,000 for space. At the show, Infinity Designs will present a slide show on a PC, pass out brochures that are printed previously, (the company printed more than needed), and show its portfolio of previous
By using the mathematical formula below calculate the impact of the exhibit on company profit (scroll all the way down below).
Formula-
Supplies as a percentage of Revenue = Supplies/Total Revenue
Travel as a percentage of Revenue = Travel/Total Revenue
Now:
Increase in Revenue MINUS
Cost of Exhibit Space
Increase in Supplies (Increase * Supply Percentage)
Increase in Travel (increase * Travel Percentage)
= Increase in Profit
Infinity deigns 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 Home and Garden Expo. The exhibit will cost the company $12,000 for space. At the show, Infinity Designs will present a slide show on a PC, pass out brochures that are printed previously, (the company printed more than needed), and show its portfolio of previous
jobs. 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:Explanation / Answer
Design supplies as a% of revenue =15500/201000= .0771 or 7.71%
Travel expense as a % of revenue = 3000/201000= .0149 or 1.49%
all other cost are fixed in nature thus irrelevant
Increase in revenue 36000 supplies expense [36000*7.71%] (2775.6) Travel expense other than depreciation [36000*1.49%] (536.4) Exhibit space cost (12000) Increase in profit /(loss) 20688Related Questions
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