BUS630 WK3 dq2 - Job Support $29.50 1 $29.50 per job Total...

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1 Gallatin Carpet Cleaning Distribution of Resource Across Activity Cross Pools Cleaning Travel To Job Carpets Jobs Support Other Wages $105,000 $30,000 $- $15,000 Cleaning Supplies $40,000 $- $- $- Cleaning Equipment Depreciation $16,000 $- $- $4,000 Vehicle Exp. $- $48,000 $- $32,000 Offic Exp. $- $- $27,000 $33,000 Presidents Compensation $- $- $32,000 $48,000 Total Cost $161,000 $78,000 $59,000 $132,000 2 Gallatin Carpet Cleaning Across Rates for Activity Cross Pools Total Total Activity Cost Activity Rate Cleaning Carpets $161,000 $20,000 $8.05 per 100sqft Travel to Jobs $78,000 $60,000 $1.30 per mile Job Support $59,000 $2,000 $29.50 per job 3 Gallatin Carpet Cleaning Cost for Flying N Ranch Total Total Activity Cost Activity Rate Cleaning Carpets $8.05 5 $40.25 per 100sqft Travel to Jobs $1.30 75 $97.50 per mile
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Unformatted text preview: Job Support $29.50 1 $29.50 per job Total $167.25 4 Gallatin Carpet Cleaning Product Margin Sales $140.00 Cost Cleaning Carpets $40.25 Travel to Jobs $97.50 Job Support $29.50 $167.25 Product Margin $(27.25) I conclude that the Flying N Ranch is not profitable as we lose $27.25 on that job. I would advise the president that when pricing jobs in the future we take into consideration the expenditure to the job and add a convience fee for an extended service area (like what most companies are doing ) to recoup some of the cost in travel. I also feel that depending on the s contract we may need to charge in the future for job support. Totals $150,000 $40,000 $20,000 $80,000 $60,000 $80,000 $430,000 e travel delivery size of the...
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This note was uploaded on 08/29/2011 for the course BUSINESS 101 taught by Professor All during the Spring '11 term at Ashford University.

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BUS630 WK3 dq2 - Job Support $29.50 1 $29.50 per job Total...

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