Question $4of4$

$1\mathrm{.}34\frac{?}{?}2\mathrm{.}67$

Jennifer was proud $of$ the consulting business she had grown over the past few years. She provided her clients with expertise $in$ information technology, corporate governanc$\frac{e}{r}$isk management, and operational efficiency. $As$ word $of$ mouth spread the positive effects $of$ her services, Jennifer wanted $to$ position her business $to$ best attract new clients while maximizing her profitability. $If$ she could increase profit, she could expand into additional expertise areas $as$ well.

She considered the most recent profitability report for her company, $as$ follows.

$\begin{array}{cc}?& \text{I}\text{n}\text{f}\text{o}\text{.}\text{T}\text{e}\text{c}\text{h}\text{.}\\ \text{C}\text{o}\text{r}\text{p}\text{.}\text{G}\text{o}\text{v}\text{.}& \text{O}\text{p}\text{e}\text{r}\text{.}\text{E}\text{f}\text{f}\text{i}\text{c}\text{.}\\ ?& \text{S}\text{a}\text{l}\text{e}\text{s}\\ \text{\$}1010000& \text{\$}505000\\ \text{\$}303000& \text{\$}202000\\ \text{C}\text{o}\text{s}\text{t}of\text{s}\text{a}\text{l}\text{e}\text{s}& 570650\\ 252500& 190890\\ 127260& \text{G}\text{r}\text{o}\text{s}\text{s}\text{m}\text{a}\text{r}\text{g}\text{i}\text{n}\\ 439350& 252500\\ 112110& 74740\\ SG\text{\&}A& 326744\\ ?& ?\\ ?& \text{O}\text{p}\text{e}\text{r}\text{a}\text{t}\text{i}\text{n}\text{g}\text{I}\text{n}\text{c}\text{o}\text{m}\text{e}\\ \text{\$}112606& ?\\ ?& ?\end{array}$

Jennifer also wondered $if$ she should take a closer look $at$ her overall selling, general, and administrative costs. While they supported the entire company, she knew that a better understanding $of$ their impact $on$ each segment would aid future planning. Her team studied each line item within the income statement's selling, general, and administrative category. She further asked the team $to$ group these costs into homogeneous pools and discern the best allocation base for each. The results are presented here.

$\begin{array}{cc}?& \text{C}\text{o}\text{s}\text{t}\\ \text{Q}\text{u}\text{a}\text{n}\text{t}\text{i}\text{t}\text{y}of\text{C}\text{o}\text{s}\text{t}\text{D}\text{r}\text{i}\text{v}\text{e}\text{r}& ?\\ ?& ?\\ \text{C}\text{o}\text{s}\text{t}\text{D}\text{r}\text{i}\text{v}\text{e}\text{r}& \text{I}\text{n}\text{f}\text{o}\text{.}\text{T}\text{e}\text{c}\text{h}\text{.}\\ \text{C}\text{o}\text{r}\text{p}\text{.}\text{G}\text{o}\text{v}\text{.}& \text{O}\text{p}\text{e}\text{r}\text{.}\text{E}\text{f}\text{f}\text{i}\text{c}\text{.}\\ ?& ?\\ Advertising\text{e}\text{x}\text{p}\text{e}\text{n}\text{s}\text{e}\text{s}& \text{\$}16300\\ \text{P}\text{e}\text{r}\text{c}\text{e}\text{n}\text{t}\text{a}\text{g}\text{e}of\text{s}\text{a}\text{l}\text{e}\text{s}& ?\\ ?& ?\\ \text{G}\text{e}\text{n}\text{e}\text{r}\text{a}\text{l}\text{e}\text{x}\text{p}\text{e}\text{n}\text{s}\text{e}\text{s}& 139664\\ \text{T}\text{o}\text{t}\text{a}\text{l}\text{l}\text{a}\text{b}\text{o}\text{r}\text{h}\text{o}\text{u}\text{r}\text{s}& 6790\\ 5770& 3680\\ \text{A}\text{d}\text{m}\text{i}\text{n}\text{.}\text{s}\text{u}\text{p}\text{p}\text{o}\text{r}\text{t}& 71730\\ \text{S}\text{u}\text{p}\text{p}\text{o}\text{r}\text{t}\text{l}\text{a}\text{b}\text{o}\text{r}\text{h}\text{o}\text{u}\text{r}\text{s}& 3480\\ 2460& 2030\\ R\text{\&}D& 25650\\ \text{R}\text{e}\text{s}\text{e}\text{r}\text{c}\text{h}\text{h}\text{o}\text{u}\text{r}\text{s}& 680\\ 110& 160\\ \text{F}\text{a}\text{c}\text{i}\text{l}\text{i}\text{t}\text{i}\text{e}\text{s}& 73400\\ \text{S}\text{q}\text{u}\text{a}\text{r}\text{e}\text{f}\text{e}\text{e}\text{t}& 1360\\ 910& 1400\\ \text{T}\text{o}\text{t}\text{a}\text{l}\text{S}\text{G}\text{E}\text{A}& \text{\$}326744\\ ?& ?\\ ?& ?\end{array}$ Your answer $is$ correct.

Calculate the gross margin percentage for each segment and for the company overall. $(Round$ answers $to2$ decimal places, $e.g.$

$15\mathrm{.}25\%)$

Info. Tech.

Crop. Gov.

Oper. Effic.

Total

$\%$

$\%$

$\%$

eTextbook and Media $(b)$

Calculate activity rates for each $of$ the $SG$&A cost pools using the allocation bases provided. $(Round$ answers $to2$ decimal places, $e.g.$

$15\mathrm{.}25.)a-$ sign $e.g-15,000or$

$15\mathrm{.}25\%orin$ parenthesis $e.g.(15,000)or(15\mathrm{.}25\%1)$

$SG$&A Costs Applied $to$ Info. Tech

$SG$&A Costs Applied $to$ Corp. Gov.

$SG$&A Expenses Applied

Advartising expenses $

General expenses

Administrative support

$R$&$D$

Facilities

Total $SG$&A expenses applied

$SG$&A Costs Allocated $to$ Oper. Effic.

$