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The firm, which bills $$162$ per hour for servictor help for its overworked professional staff. The cost per hour for professional staff time is $$72.$ Selected information follows.

Billable hours to clients for the year totaled $8,200,$ consisting of information systems services, $4,920$; e$-$commerce consulting, $3,280.$

Administrative cost of $$414,760$ was $($and continues to be$)$ allocated to both services based on billable hours. These costs consist of staff support, $$221,520$; in $-$house computing, $$156,000$; and miscellaneous office charges, $$37,240.$

A recent analysis of staff support costs found a correlation with the number of clients served. In$-$house computing and miscellaneous office charges varied directly with the number of computer hours logged and number of client transactions, respectively. A tabulation revealed the following data:

$\backslash$table$[[,$Information,E$-$Commerce,$],[$Descriptions$,$Systems Services,Consulting,Total$],[$Number of clients,$250,70,320],[$Number of computer hours,$3,670,2,320,5,990],[$Number of client transactions,$700,830,1,530]]$

Required:

$3.$ Assume that the firm uses activity$-$based costing. Determine the profitability of the firm's information systems and e$-$commerce activities, expressing your answer both in dollars and as a percentage of activity revenue.

$4.$ Jeffrey Grady, one of the firm's partners, doesn't care where his professionals spend their time because, as he notes, "many $c$ have come to expect both services and we need both to stay in business. Also, information systems and e$-$commerce profess are paid the same hourly rate." Should Grady's attitude change?

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Required $3$

Assume that the firm uses activity$-$based costing. Determine the profitability of the firm's information systems and ecommerce activities, expressing your answer both in dollars and as a percentage of activity revenue.

Note: Do not round intermediate calculations. Round income to the nearest whole dollar and profitability to $2$ decimal places $($i$\mathrm{.}4=12\mathrm{.}34\%).$ONLY THE INCOME PART FOR REQUIRED IS WRONG AND ECOMMERCE PROFITABILITY PERCENT EVERYTHING ELSE Is CORRECT

Show less $4$

$\backslash$table$[[$Department$,$Total Billings,Income,Profitability,,$],[$Information systems services,$$,797,040,$$$,157,140,19\mathrm{.}71,\%$

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