Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer Put yourself in the place of a consultant and calculate the profitability of each service offered by this company and Identify the winners

please answer "Put yourself in the place of a consultant and calculate the profitability of each service offered by this company and Identify "the winners and the losers" Further, figure out how to turn around the losing services , again as a consultant, Make your recommendations with specifics (numbers should accompany each recommendation). Also figure out how to capitalize on the "winners". Also come up with some cost management/containment ideas, again with specifics. Do not just make general statements about improving the profitability or reduce costs. Consultants are not paid to make general statements"

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Requirement 1: GALLATIN CARPET CLEANING Distribution of Resource Consumption Across Activity Cost Pools 0 Cleaning Travel to Carpets Jobs Other Totals 70% 100% 80% 0% 0% 20% 0% 0% 60% 0% 10% 0% 20% 40% 55% 60% 100% 100% 100% 100% 100% 100% 0% 0% Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation 0% 45% 40% Cleanin Carpets Travel to Jobs Job Other Totals 30,000 105,000 40,000 16,000 Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Total cost 5,000 $150,000 40,000 20,000 80,000 60,000 80,000 $161,000$78,000$59,000 $132,000$430,000 4,000 32,000 33,000 48,000 48,000 27,000 32,000 Requirement 2: GALLATIN CARPET CLEANING Activity Rates for Activity Cost Pools Total Total Cost Activi Activity Rate Activity Cost Pool Cleaning carpets Travel to job Job support $161,000 78,000 59,000 20,000 0,000 2,000 $8.05 per hundred square feet 1.30 per mile 29.50 per job

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Future Of Audit Keeping Capital Markets Efficient

Authors: Keith Houghton, Christine Jubb, Michael Kend, Juliana Ng

1st Edition

1921666501, 978-1921666506

More Books

Students also viewed these Accounting questions