3, E5-27 (similar to) Part 1 of 3 HW Score: 0%, 0 of 12 points O Points: 0 of 3 Save Gabriel Supermarkets (GS) operates at capacity and decides to apply ABC analysis to three product lines: baked goods, milk and fruit juice, and frozen foods. It identifies four activities and their activity cost rates as follows: (Click the icon to view the activity cost rates.) The revenues, cost of goods sold, store support costs, activities that account for the store support costs, and activity-area usage of the three product lines are as follows: (Click the icon to view the information for the three product lines.) Read the requirements. Requirement 1. Use the simple costing system to prepare a product-line profitability report for GS. (Round the percentages to the nearest hundredth percent, XXX%) Revenues Costs Cost of goods sold Store support Total costs Operating income Operating income/Revenues Baked Goods Milk and Fruit Juice Frozen Products Total % Requirements 1. Use the simple costing system to prepare a product-line profitability report for GS. 2. Use the ABC system to prepare a product-line profitability report for GS. 3. What new insights does the ABC system in requirement 2 provide to GS managers? More info Ordering Delivery and receipt of merchandise Shelf-stocking Customer support and assistance $104 per purchase order $82 per delivery $18 per hour $0.24 per item sold Print Done - X Data table Financial data Milk and Baked Goods Fruit Juice Frozen Products Revenues $ 59,000 $ 66,000 $ 52,500 Cost of goods sold 39,000 $ 46,000 $ 33,000 Store support 11,700 $ 13,800 $ 9,900 Activity-area usage (cost-allocation base) Ordering (purchase orders) 20 20 Delivery (deliveries) Shelf-stocking (hours) Customer support (items sold) 15 5 100 40 35 195 170 15 15,500 19,375 7,000 Under its simple costing system, GS allocated support costs to products at the rate of 30% of cost of goods sold