PROBLEM $7-20$ Evaluating the Profitability of Services $,[07-5]$

Gallatin Carpet Cleaning is a small, family$-$owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $$28$ per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers$-$particularly those located on remote ranches that require considerable travel time. The owner's daughter, home for the summer from college, has suggested investigating this question using activity$-$based costing. After some discussion, a simple system consisting of four activity cost pools seemed to be adequate. The activity cost pools and their activity measures appear below.

$\backslash$table$[[$Activity Coss Pool,Activity Measure,Activity for the Year$],[,\backslash$table$[[$Square foet cleaned $($