d?? Profitability  Complete the following exercise and respond to at least two of yourfellow stude

  Profitability
 
Complete the following exercise and respond to at least two of yourfellow students’ postings. Gallatin Carpet Cleaning is a small,family-owned business operating out of Bozeman, Montana. For itsservices, the company has always charged a flat fee per hundredsquare feet of carpet cleaned. The current fee is $28 per hundredsquare feet. However, there is some question about whether thecompany is actually making any money on jobs for somecustomers-particularly those located on remote ranches that requireconsiderable travel time. The owner’s daughter, home for the summerfrom college, has suggested investigating this question usingactivity-based costing. After some discussion, a simple systemconsisting of four activity cost pools seemed to be adequate. Theactivity cost pools and their activity measures appear below:

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