Peacock Inc

Multiple Choice

Peacock Inc. is a contracting business that creates one-of-a-kind murals for each individual client. They have been asked by a potential client to prepare an estimate for the creation of a floral mural for the client's office waiting room. Turner, the main artist for Peacock would like the company to consider updating its billing methods from a flat rate of $370.00 per painting hour to an Activity-Based Costing (ABC) method that would include a markup of 29%. After visiting the client's proposed site, Turner has put together the following estimate for the floral mural:
What is the difference in profit for Peacock between the flat rate and the new ABC method proposed by Turner?

A) $281.33 less profit under ABC
B) $281.33 more profit under ABC
C) $8,946.47 less profit under ABC
D) $8,946.47 more profit under ABC