Shondra was proud of the consulting business she had grown over the past few years....
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Shondra was proud of the consulting business she had grown over the past few years. She provided her clients with expertise in information technology, corporate governance/risk management, and operational efficiency. As word of mouth spread the positive effects of her services, Shondra 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. Shondra 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. Which segment is most profitable when using gross margin percentages? Which segment is most profitable when looking at profit margin percentages? Which of these views is the most useful for Shondra? Explain. eTextbook and Media Provide at least three recommendations for Shondra as she considers moves to make her business more profitable. How does the use of this activity-based information support these actions
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