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Family Supermarkets (FS) has decided to increase the size of its Memphis store. It wants in-Activity formation about the profitability of individual product lines: soft

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Family Supermarkets (FS) has decided to increase the size of its Memphis store. It wants in-Activity formation about the profitability of individual product lines: soft drinks, fresh produce, and (1) packaged food. FS provides the following data for 2017 for each product line Description of Activity Total Support Costs Cost-Allocation Bas 4) Direct tracing to soft-drink ine 1. Bottle returns Returning of empty bottles to store 4,800 Soft Drinks-Fresh Produce PackagedFood_2.Ordering Placing ofordersfor purchases $62400624purchase orders 317,400 S43,960 360,000 S04. Shelf-stocking 3. DeliveryPhysical delivery and receipt of $100,800 26liveries 600,000 Cost of goods sold Cost of bottles returned Number of purchase orders placed Number of deliveries received Hours of shelf-stocking time Items sold 4,80 144 Stocking of merchandise on store $ 69,120 $122.880 360,000 3456 hours of 144 shelves and ongoing restocking Assistance provided to customers, ncluding checkout and bagging heilfstocking time 614,400 items sold 5.Customer 876 2,160 41,500 216 50,400 support Total 22,400 Requirements . Family Supermarkets currently allocates store support costs (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 percentage of revenues for each product line 2. If Family Supermarkets allocates store support costs (all costs other than cost of goods sold) to product lines using an ABC system, calculate the operating income and operating income as a percentage of revenues for each product line. . Comment on your answers in requirements 1 and 2

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