Problem 7-20 Evaluating the Profitability of Services [LO7-2, LO7-3, LO7-4, LO7-5 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 $23 60 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, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below 7,000 hundred square feet Square feet cleaned (00s) Miles driven 323,500miles Job support Number of Jobs 2,e80 jobs capacity costs) The total cost of operating the company for the year is $350.000 which includes the following costs 5 142,0a0 35,e00 9,e00 26,000 66,000 14% 100% 100% 100% 100% 100% Job on. and so of costs to the Total by points Print per job and final a to 2