Problems You operate a high-end car detailing business... and your owner is quite disappointed with the results expecially, for cars, which is your largest volume. She says... "let's stop detailing cars... it is killing our profits" Currently, total expenses are allocated based on total vehicles detailed. You have decided to implement an Activity based costing system. You identified 3 primary activities... noted below... selling expenses, interior cleaning and exterior cleaning. Restate results based on ABC... what are your conclusions. What recommendations would you make? TOTAL 700 Units Price per vehicle Sales Expenses Profit (loss) Trucks 200 $40.00 $8,000 ($1.429) $6,571 Cars 400 $30.00 $12,000 ($2,857) $9,143 SUV 100 $70.00 $7,000 ($714) $6,286 $27,000 ($5,000) $22.000 3 primary activities: Selling expenses (based on sales dollars) Interior clean (hours) Exterior clean (hours) 400.0 200.0 400.0 320.0 300.0 150.0 $5,000 1,100.0 670.0 Interior labor cost per hour Exterior labor cost per hour $12.00 $10.00