2. Calculate the profit percentage for each service line under each overhead allocation
method.
Exhibit 1 MacDougall'S GARDENS Statement of Earnings Total revenue $ 1,280,000 Plants,sod 411,000 Direct labor 487,200 Other material, supplies 38,400 Payroll and reception 49,000 Purchasing, accounts payable 31,000 Vehicle depreciation 28,000 Equment depreciation 18,750 IT systems depreciation 14,000 Office rent and utilities 30,000 Nursery rent, utilities and maintenance 25,000 1,132,350 Total expenses Net profit $ 147,650 Profit margin 12% Exhibit #2 MacDougallS GARDENS Earning Statement by Service Line Total Design Installation Maintenance Administration Total Revenue 1,280,000 180,000 820,000 280,000 Plants, Sod 411,000 369,000 42,000 369,600 117,600 225,000 115,200 29,400 38,400 5,400 24,600 8,400 49,000 49,000 Direct Labour Other materials and supplies Payroll and reception Purchasing Vehicle depreciation Equipment depreciation IT systems depreciation 31,000 31,000 28,000 28,000 18,750 18,750 14,000 14,000 30,000 30,000 Office rent and utilities Nursery Rent, utilities and maintenance 25,000 25,000 Total expenses 1,014,750 5,400 618,600 165,600 225,150 Net Profit 265,250 174,600 201,400 114,400 - 225,150 Profit Margin 21% 97% 25% 41% - *80% of 2 designers' salaries FTES Purchase orders Nursery Square Feet Vehicle Usage Equipment Usage IT Systems Usage Design Installation Maintenance Administration Office Square Feet 360 65 65 130 5,000 500 10% 45% 45% 0% 90% 10% 0% 60% 5% 5% 30% 2.0 72 4.6 2.0 20 260 40 10.0 0% Total 620 5500 100% 100% 100% 330 Exhibit 1 MacDougall'S GARDENS Statement of Earnings Total revenue $ 1,280,000 Plants,sod 411,000 Direct labor 487,200 Other material, supplies 38,400 Payroll and reception 49,000 Purchasing, accounts payable 31,000 Vehicle depreciation 28,000 Equment depreciation 18,750 IT systems depreciation 14,000 Office rent and utilities 30,000 Nursery rent, utilities and maintenance 25,000 1,132,350 Total expenses Net profit $ 147,650 Profit margin 12% Exhibit #2 MacDougallS GARDENS Earning Statement by Service Line Total Design Installation Maintenance Administration Total Revenue 1,280,000 180,000 820,000 280,000 Plants, Sod 411,000 369,000 42,000 369,600 117,600 225,000 115,200 29,400 38,400 5,400 24,600 8,400 49,000 49,000 Direct Labour Other materials and supplies Payroll and reception Purchasing Vehicle depreciation Equipment depreciation IT systems depreciation 31,000 31,000 28,000 28,000 18,750 18,750 14,000 14,000 30,000 30,000 Office rent and utilities Nursery Rent, utilities and maintenance 25,000 25,000 Total expenses 1,014,750 5,400 618,600 165,600 225,150 Net Profit 265,250 174,600 201,400 114,400 - 225,150 Profit Margin 21% 97% 25% 41% - *80% of 2 designers' salaries FTES Purchase orders Nursery Square Feet Vehicle Usage Equipment Usage IT Systems Usage Design Installation Maintenance Administration Office Square Feet 360 65 65 130 5,000 500 10% 45% 45% 0% 90% 10% 0% 60% 5% 5% 30% 2.0 72 4.6 2.0 20 260 40 10.0 0% Total 620 5500 100% 100% 100% 330
