Can someone please help me with this question? I cannot figure it out. I need help with requirements 1-3
Please see attached picture. Thank you all for help.
I need this to write a brief analysis but having trouble calculating.
Super Bookstore (SB) is a large city bookstore that sells books and music CDs and has a cafe. SB opiates at capacity and ai locates selling, general, and administration (S, G & A) costs to each product line using the cost of merchandise of each product line. SB wants to optimize the pricing and cost management of each product line SB is wondering rf its accounting system 6 providing it with the best information for making such decisions. Super Bookstore incurs the following selling, general, and administration costs. Suppose Super Bookstore uses cost or merchandise to allocate all S, G & A costs Prepare product line and total company income statements. Identify an improved method for allocating costs to the three product lines. Explain. Use the method for allocating S, G & A costs that you propose to prepare new product line and total company income statements. Compare your results to the results in requirement 1. Write a memo to Super Bookstore's management describing how the improved system might be useful for managing Super Bookstore. Super Bookstore (SB) is a large city bookstore that sells books and music CDs and has a cafe. SB opiates at capacity and ai locates selling, general, and administration (S, G & A) costs to each product line using the cost of merchandise of each product line. SB wants to optimize the pricing and cost management of each product line SB is wondering rf its accounting system 6 providing it with the best information for making such decisions. Super Bookstore incurs the following selling, general, and administration costs. Suppose Super Bookstore uses cost or merchandise to allocate all S, G & A costs Prepare product line and total company income statements. Identify an improved method for allocating costs to the three product lines. Explain. Use the method for allocating S, G & A costs that you propose to prepare new product line and total company income statements. Compare your results to the results in requirement 1. Write a memo to Super Bookstore's management describing how the improved system might be useful for managing Super Bookstore
