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3) 1) Use the peanut butter approach, where support costs are allocated to products at the rate of 30% of cost of goods sold, to
3) 1) Use the peanut butter approach, where support costs are allocated to products at the rate of 30% of cost of goods sold, to compute a product line profitability report. 2) Use the ABC system(ordering at $100 per purchase order, delivery at $80 per delivery, shelf stacking at $20 per hour, and customer support at $0.20 per item sold) to compute a product line profitability report. 3) 1) Use the peanut butter approsch, where support costs are allocated to prodects at the raic of 30% of cost of goods sold, to compute a product line profitability report. 2) Use the ABC system(ordering at $100 per purchase order, delivery at $80 per delinery, ahelf stacking at $20 per hour, and customer support at $0.20 per itern sold) to cormputieny, athet profitability report. 4 ABC, retail product line profitability. Family Supermarkets (FS) found that its ABC analysis (see p. 105) provided important insights. It extends the analysis to cover three more product lines-baked goods, milk and fruit juice, and frozen foods. The revenues, cost of goods sold, store support. costs, and activity area usage of the three product lines is as follows
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