'1 Chrome File Edit View History Bookmarks Profiles Tab Window Help to a; 4; L:J an inmates MonMarZ? 1:10 PM (1 e E 0-3. monastionZ-ModuleZHW-C x + e V C Q i ezto.mheducationcomfexti'mapiindex.htrnl?_con:con&external_browser:0&launchUrl:https%253A%252F%252Fln-is.mheducation.com%252Fmghmidd|eware%2... [:1 i} Q I] o E Module 2 HW 0 2 points Check my work mod Saved his shows what ls correct or Incorrect for the work you have completed so fa Help Save at Exit Submit does not Indicate completion. Return to question Superman Food Stores (BPS) has experienced net operating losses in its frozen food products line in the last few periods. Management believes that the store can improve its protability if SFS discontinues frozen foods. The operating results from the most recent period are: Frozen Foods Sales 5 120,000 Cost: of goods sold 105,000 Baked Goods S 91,000 67,000 Fresh Produce $ 153,175 110,000 SFS estimates that store support expenses. in total. are approximately 20% of revenues. The controller says that not every sales dollar requires or uses the same amount of store support activities. A preliminary analysis reveals store support activities for these three product lines are: Activity {cost drive r ] Order processing (number of purchase orders) Receiving {number of deliveries} Shelf-stocking (number: of hours per delivery) Customer support (total units sold} Frozen Foods 10 12 30,000 Baked Goods 45 55 D .5 40,000 The controller estimates activity-cost rates for each activity as follows: Order processing 5 EU Receiving 11 U Shelf-stockinq 15.25 Customer support 0.2 1 Required: per per per per purchase order delivery hour item Fresh Produce 1 0 D 1 2 0 56,000 1. Prepare a product-line profitability report for SFS under the current costing system. 2. Prepare a product-line protability report for SFS using the ABC information the controller provides. ( Erev. 2of5 9 Answer Is complete but not entlrely correct. Nest > " Chrome File Edit View History Bookmarks Profiles Tab Window Help GM + ? ) 100% 27 Mon Mar 27 1:11 PM Q DE . .. M Question 2 - Module 2 HW - Cc X + - -> C D ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%2.. Module 2 HW Saved Help Save & Exit Submit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 2 2. Prepare a product-line profitability report for SFS using the ABC information the controller provides. & Answer is complete but not entirely correct. 2 Complete this question by entering your answers in the tabs below. points Required 1 Required 2 Prepare a product-line profitability report for SFS using the ABC information the controller provides. (Loss amounts should be indicated by a minus sign. Round operating margin (loss) to 2 decimal places (i.e. .2134 should be entered as 21.34%). Round your other answers to nearest whole dollar.) Frozen Food Baked Goods Fresh Produce Sales $ 120,000 $ 91,000 $ 158,175 Cost of goods sold 105,000 67,000 110,000 Gross margin 15,000 $ 24,000 $ 48, 175 Store support Order processing 800 $ 3,600 $ 8,000 Receiving 1,320 6,050 13,200 Shelf-stocking 366 42 X 7,320 Customer support 6,300 8,400 18,060 Total store support cost ,786 18,092 16.580 Operating income (loss) 6,214 5,908 x $ 1,595 Operating margin (loss) 5.18 % 6.49 %% 1.01 % Mc Graw Hill