Australian Mart (AM) operates at capacity and decides to apply ABC analysis to three product lines: pastry and cakes, Dairy Products, and meat products. It identifies four activities and their activity cost rates as follows:

• Ordering $100 per purchase order
• Delivery and receipt of merchandise $ 80 per delivery
• Shelf-stocking $ 20 per hour
• Customer support and assistance $ 0.20 per item sold

The revenues, cost of goods sold, store support costs, the activities that account for the store support costs, and activity-area usage of the three product lines are as follows:

Particulars Pastry and Dairy Products Meat cakes Products Fundamentals Revenue 57000 63000 52000 Cost of Goods sold 38000 47000 35000 Store support 11400 14100 10500 Activities (Cost allocation base) Ordering (purchasing order) 30 25 13 Delivery (Deliveries) 98 36 28 Shelf-stocking (hours) 183 166 24 Customer support (item sold) 15500 20500 7900