Michelle recently transitioned her career from the manufacturing sector to the service sector, where she took a job with a management training organization. She needed a change of pace and a fresh setting. Because she had 12 years of supervisory experience in manufacturing the leadership team at the management training organization was thrilled to have her. The organization provided targeted training sessions in the following areas: supervisory, management, finance and accounting and leadership. In the team's fourth quarter planning meeting the CEO spoke to Michelle. "Michelle, your years of studying process efficiency and effectiveness are beneficial to us, as is your work in improving information for decision-making. Further, we recognize your experience in implementing an activity-based costing system. Therefore, we are assigning you to be the team leader for our own ABC initiative with two key goals: (1) improve the accumulation and allocation of costs to our key events for improved decision-making, and (2) use this new information to drive improvements in efficiency and effectiveness throughout our processes. Are you up for the challenge?" Michelle didn't hesitate. She wanted the opportunity to bring her expertise to this new setting and participate in a team effort that could benefit many stakeholders: employees, customers, suppliers, and even the community. I'm in" she confirmed. Once the meeting concluded, Michelle started making notes. There was much data to gather to better understand how costs were treated right now. This would help her with options within the new ABC system. At Michelle's request, the accounting supervisor provided her with the following information about this year's profitability by category, where only direct costs were assigned to each key training category throughout the year. Supervisors Management Total Finance and Accounting $50,000 Leadership $210,000 Revenue $130,000 $80,000 $470,000 Direct costs Trainer fees Training facility costs 10,000 8,000 9,000 17,000 44,000 63.000 36,000 22.000 85,000 206,000 Event support on-site 5,000 5,000 5,000 5,000 20,000 Materials 1,000 1,000 1,000 5,000 8,000 $51,000 $30,000 $13,000 $98.000 $192,000 Gross margin Indirect costs Selling, general, & admin. 154,150 Operating income $37,850 (a1) Calculate the gross margin percentages for each key training area. (Round gross margin percentage to 2 decimal places, e.g. 15.25%.) Supervisors Risk Management Finance & Accountin Gross margin percentage % % Calculate the gross margin percentages for each key training area. (Round gross margin percentage to 2 decimal places, e.g. 15.25%.) Management Finance & Accounting Leadership Total % % % %