Question
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"
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 jobStep by Step Solution
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