Answer the following worksheet

In-Class Problem: Carbon Consulting is a small firm that provides various services to two customer, Vast Depot and Mini- store. Vast Depot has been requesting more and more of Carbon Consulting's time and business, which has reduced the amount of time available to work with Mini-Store. The company is concerned with minimizing its' dependence on Vast Depot for business and would like to work more with Mini-store or even some other customers. Michelle, one of the senior consultants has argued that since their total operating profit exceeds the budgeted target of 4.5%, the company should cotinue servicing Vasi-Depot. After all, it is guaranteed revenue. During the recent period, Carbon Consulting has revenuc for consulting services of $372,000 for the month, $297,600 from Vast Depot and $74,400 in revenue from Mini-store. Carbon consulting has incurred the following expenses during the month of June. Support staff Salaries Computer leases Supplies Office Rent $ 162,000 44,000 88,000 35,000 26,000 S 355.000 Total 1) What is Carbon Consulting's profit for the pcriod? 2) Does Carbon Consulting's operating margin exceed 45%? 3) Does Carbon Consulting have any inventory? What does this mean to our analysis? 4) Which of the costs listed above are direct? Which are Indirect? Total the indirect costs and we will call this "overhead" 5) Records indicate that the professional staff worked 5,200 hours on Vast Depot account and 1,200 hours on Mini Store. Professional Salarics expense was $137,000 and $25,000 for Vast Depot and Mini Store, respectively. Calculate an overhead rate using direct labor hours. 6) Allocate all the costs between Vast Depot and Mini-store and complete the table below Total $3 Vast Depot $ 297 Mini-store Sales Revenue Expenses: S 74,400 Direct Costs Applied OH Operating Margin Operating Margin % Total Job Costs Determine the operating margin and % for each Ostomer. Based on this information, do you agree with Michelle regarding continuing to focus services on Vast Depot. Why or why not? 7)