Family Supermarkets (FS) has decided to increase the size of its Memphis store. It wants information about the profitability of individual product lines: soft drinks, fresh produce, and packaged food. FS provides the following data for 2017 for each product line: Packaged Food $483,960 $360,000 $0 Revenues Cost of Goods Sold Cost of bottles returned Number of purchase orders placed Number of deliveries received Hours of shelf-stocking time Items sold Soft Drinks $317,400 $240,000 $4,800 144 120 216 50,400 Fresh Produce $840,240 $600,000 $0 336 876 2,160 441,600 144 264 1,080 122,400 FS also provides the following information for 2017: Activity Bottle Returns Ordering Delivery Shelf-stocking Customer support TOTAL Total support costs Cost-Allocation Base 4,800 direct tracing to soft-drink line 62,400 624 purchase orders 100,800 1,260 deliveries 69,120 3,456 hours of shelf-stocking time 122,880 614,400 items sold 360,000 1. FS currently allocates store support costs (all costs other than costs 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 FS 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 percentage of revenues for each product line. 3. Comment on your answers in requirements 1 and 2