Could you help on this attached textbook question?

COLOMBO FROZEN YOGURT: Activity-Based Costing you've seen in this chapter, activity-based costing systems are usell in helping managers make better decisions about ang, and storage, and $3 Cost of goods sold includes product mix, and cost management related to product and efficiency. In fact, General Mills used ABC to iden-is the same However, pick, pack The product is the same and analyze the costs associated with the different chan ee's used to market its Colombo frozen yogurt products pallet Full Before performing ABC analysis, General ils charged the in a palet, with pallet and case usage by segment shown here same prices and provided the same s customers, whether the customer was in the grocery (food pur chased for later consumption or preparation at home) or the food ervice loutside of home, immediate consumption) channel Upon closer examina covered segments within food service: destination yogurt shops or per case-to Cases in full pallets Individual cases tion of the food-service channel, General Mils dis 0.000240000 140 000 1,200,00 nd impulse locations, located in business cafeterias Merchandising costs consist mainly of kits at $500 each.A total campuses and miltary bases. General Mills also of 3,450 kits were delivered last year, 90 of them to yogurt oaiced that sales dollars for frozen yogurt products were relatively shops. For SG&A, costs were allocated to products based orn constant, but profits were declining The company that sensed that gross sales dollars. When a random sample of the sales force than impulse was asked to keep diaries for 60 days, the resulting data destination yogurt shops may be more pr locations, but it didn't have the information about profit differences revealed they spent much more time o make changes.General Mils logic was: Destination shops/ sales than other General Mils products they represente restaurants focus on maximizing profit per square foot and manag result, when SG&A costs were allocated based on ng the average sale per customer. However, impulse locations total allocation to yogurt jumped from $1,185,000 to $3,900,000 focus on cost per serving, and this segment of the business was Of the total time poeng at a much faster rate than the destinaton shop segment 1% of that time was spent in shops. spent on selling Colombo frozen yogurt, only The sales data and income statements for last year by seg- QUESTIONS Impulse Yog urt 1. How do the two segments identified by General Mills for Total Colombo frozen yogurt sales differ from each other? Sales in cases Sales revenue 1,200,000 300,000 1,500,000 $5,970,000 $29,850,000 Deduct Promotions 3,600,000 900,000 4500,000 $20280,000 $5,070,000 $25,350,000 3,800,000345000017,250,000 S 6,480,000 S1.620.000 $ 8,100,000 Deduct Merchandising 1,380,000 345,000 1,25,000 2. Using ABC analysis, restate the income statements, above, to show new net income (hint add a line item for shipping). What is net income per case? 3. Based on your analysis in question 2, what changes should Deduct COGS Gross margin General Mills make? (IMA adapted, "Colembo Frozen Yogurt" John Guy and Jane Accounting Practice, Vol 15 Institute of Management Accountants, 2000) D IMA. Reprinted with permission from the Institute of Management Accountants 237,000 1.185.000 Saly, Cases from Mana Deduct: SG&A Net income 948,000 S 4,152,000 $1,038,000 $ 5,190,000 Montvale, N.J, www.imanet.org general, and administrative expenses COLOMBO FROZEN YOGURT: Activity-Based Costing you've seen in this chapter, activity-based costing systems are usell in helping managers make better decisions about ang, and storage, and $3 Cost of goods sold includes product mix, and cost management related to product and efficiency. In fact, General Mills used ABC to iden-is the same However, pick, pack The product is the same and analyze the costs associated with the different chan ee's used to market its Colombo frozen yogurt products pallet Full Before performing ABC analysis, General ils charged the in a palet, with pallet and case usage by segment shown here same prices and provided the same s customers, whether the customer was in the grocery (food pur chased for later consumption or preparation at home) or the food ervice loutside of home, immediate consumption) channel Upon closer examina covered segments within food service: destination yogurt shops or per case-to Cases in full pallets Individual cases tion of the food-service channel, General Mils dis 0.000240000 140 000 1,200,00 nd impulse locations, located in business cafeterias Merchandising costs consist mainly of kits at $500 each.A total campuses and miltary bases. General Mills also of 3,450 kits were delivered last year, 90 of them to yogurt oaiced that sales dollars for frozen yogurt products were relatively shops. For SG&A, costs were allocated to products based orn constant, but profits were declining The company that sensed that gross sales dollars. When a random sample of the sales force than impulse was asked to keep diaries for 60 days, the resulting data destination yogurt shops may be more pr locations, but it didn't have the information about profit differences revealed they spent much more time o make changes.General Mils logic was: Destination shops/ sales than other General Mils products they represente restaurants focus on maximizing profit per square foot and manag result, when SG&A costs were allocated based on ng the average sale per customer. However, impulse locations total allocation to yogurt jumped from $1,185,000 to $3,900,000 focus on cost per serving, and this segment of the business was Of the total time poeng at a much faster rate than the destinaton shop segment 1% of that time was spent in shops. spent on selling Colombo frozen yogurt, only The sales data and income statements for last year by seg- QUESTIONS Impulse Yog urt 1. How do the two segments identified by General Mills for Total Colombo frozen yogurt sales differ from each other? Sales in cases Sales revenue 1,200,000 300,000 1,500,000 $5,970,000 $29,850,000 Deduct Promotions 3,600,000 900,000 4500,000 $20280,000 $5,070,000 $25,350,000 3,800,000345000017,250,000 S 6,480,000 S1.620.000 $ 8,100,000 Deduct Merchandising 1,380,000 345,000 1,25,000 2. Using ABC analysis, restate the income statements, above, to show new net income (hint add a line item for shipping). What is net income per case? 3. Based on your analysis in question 2, what changes should Deduct COGS Gross margin General Mills make? (IMA adapted, "Colembo Frozen Yogurt" John Guy and Jane Accounting Practice, Vol 15 Institute of Management Accountants, 2000) D IMA. Reprinted with permission from the Institute of Management Accountants 237,000 1.185.000 Saly, Cases from Mana Deduct: SG&A Net income 948,000 S 4,152,000 $1,038,000 $ 5,190,000 Montvale, N.J, www.imanet.org general, and administrative expenses