Clark and Shiffer LLP perform activities related to e-commerce consulting and information systems in Vancouver, British Columbia. The firm, which bills $168 per hour for services performed, is in a very tight local labor market and is having difficulty finding quality help for its overworked professional staff. The cost per hour for professional staff time is $78. Selected information follows.

	Billable hours to clients for the year totaled 8,800, consisting of: information systems services, 5,280; e-commerce consulting, 3,520.
	Administrative cost of $423,760 was (and continues to be) allocated to both services based on billable hours. These costs consist of staff support, $225,480; in-house computing, $159,000; and miscellaneous office charges, $39,280.

A recent analysis of staff support costs found a correlation with the number of clients served. In-house computing and miscellaneous office charges varied directly with the number of computer hours logged and number of client transactions, respectively. A tabulation revealed the following data:

	E-Commerce Consulting		Information Systems Services		Total
Number of clients	85		265		350
Number of computer hours	2,380		3,880		6,260
Number of client transactions	860		760		1,620

Required:

2.	Assume that the firm uses traditional costing procedures, allocating total costs on the basis of billable hours. Determine the profitability of the firms e-commerce and information systems activities, expressing your answer both in dollars and as a percentage of activity revenue. (Do not round intermediate calculations. Round "Profitability" to 2 decimal places.)

3.	Using activity-based costing, determine the profitability of the firms e-commerce and information systems activities, expressing your answer both in dollars and as a percentage of activity revenue.