Broger Bites has experienced net operating losses in its frozen food products line in the last few periods. Management believes that the store can improve its profitability if Broger discontinues frozen foods. The operating results from the most recent period are:

	Frozen Treats	Baked Goods	Fresh Fruits	Total
Sales	$120,000	$91,000	$158,175	$369, 175
Cost of goods sold	105,000	67,000	110,000	282,000

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 driver)	Frozen Treats	Baked Goods	Fresh Fruits	Total cost driver units	Overhead costs
Order processing (number of purchase orders)	20	60	120	200 orders	$12,400
Receiving (number of deliveries)	15	75	160	250 deliveries	$20,500
Shelf-stocking hours	30	170	300	500 stocking hours	$8,000
Customer support (total units sold)	30,000	40,000	86,000	156,000 units sold	$15,600
Total overhead costs					$56,500

1. Volume based: What is the overhead rate per unit if Broger uses units sold as the cost driver?
2. Volume based: How much overhead is allocated to Frozen Treats using units sold as the allocation base?
3. Volume based: What is the net profit or loss on the Frozen Treats?
4. Activity based: Calculate the overhead rate for each of the four activities above. (Order processing, receiving, shelf stocking, and customer support)
5. Activity based: How much overhead is allocated to Frozen Treats using the activity rates you calculated in part 4.
6. Activity based: What is the net profit or loss on the Frozen Treats?