4. Family Store wants information about the profitability of individual product lines: soft drinks, fresh produce and packaged food. The store provides the following data for the current year for each product line: Soft drinks Fresh produce Package food Revenues Cost of goods sold Cost of bottles returned Number of purchase orders placed Number of deliveries received Hours of shelf-stocking time Items sold Tk. 7,93,500.00 6,00,000.00 12,000.00 360 300 540 1,26,000 Tk. 21,00,600.00 15,00,000.00 0 840 2,190 5,400 11,04,000 Tk. 12,09,000.00 9,00,000.00 0 360 660 2,700 3,06,000 Family Store also provides the following information for the current year: Activity Description of activity Total cost Cost-allocation base Bottle returns Ordering Delivery Shelf-stocking Returning of empty bottles Placing of orders for purchases Physical delivery and receipt of goods Stocking of goods on store shelves and on-going restocking Assistance provided to customers including checkout Tk. 12,000.00 1,56,000.00 2,52,000.00 1,72,800.00 Direct tracing of soft drink line 1,560 purchase orders 3,150 delivers 8,640 hours of shelf-stocking time Customer support 3,07,200.00 15,36,000 items sold REQUIRED: (1) Family Store currently allocates support cost (all costs other than cost of goods sold) to product lines on the basis of cost of goods sold of each product line. Calculate the operating income and operating income as a % of revenues for each product line. (ii) If Family Store allocates support costs (other than cost of goods sold) to product lines using an activity-based costing system, calculate the operating income and operating income as a % of revenues for each product line. (iii) Comment on your answers in requirements (i) and (ii)