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er 7 Assignment i Saved Problem 7-19 Evaluating the Profitability of Services [LO2, LO3, LO4] Kenosha Winter Services is a small, family-owned snow-removal business. For its services, the company has always charged a flat per hundred square metres of snow removal. The current fee is $11.55 per hundred square metres. However, there is some quest about whether the company is actually making any money on jobs for some customers-particularly those located on more remote properties that require considerable travel time. The owner's daughter, home from school for the summer, has suggested investig this question using ABC. 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: Activity Cost Pool Activity Measure Activity for the Year Snow removal Square metres cleaned (00s) 40, 055 hundred square metres Travel to jobs Kilometres driven 20, 625 kilometres Job support Number of jobs 250 jobs Other (costs of idle capacity and organization-sustaining costs) None NA The total cost of operating the company for the year is $442,500, which includes the following costs: Wages $171, 000 Supplies 43, 500 Snow removal equipment depreciation 23, 500 Vehicle expenses 43, 500 Office expenses 67, 000 President's compensation 94 , 000 Total cost $442, 500 Resource consumption is distributed across the activities as follows: