Grady and Associates performs a variety of activities related to information systems and e-commerce consulting in Toronto, Canada. The firm, which bills $174 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 $84. Selected information follows.

Billable hours to clients for the year totaled 9,400, consisting of information systems services, 5,640; e-commerce consulting, 3,760.

Administrative cost of $432,760 was (and continues to be) allocated to both services based on billable hours. These costs consist of staff support, $229,440; in-house computing, $162,000; and miscellaneous office charges, $41,320.

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:

	Information Systems Services				E-Commerce Consulting				Total
Number of clients		280				100				380
Number of computer hours		4,090				2,440				6,530
Number of client transactions		820				890				1,710

Required:

3. Assume that the firm uses 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.