Fitzgerald Supermarkets (FS) operates at capacity and decides to apply ABC analysis to three product lines: baked goods, milk and fruit juice, and frozen foods. It identifies four activities and their activity cost rates as follows: (Click the icon to view the activity cost rates.) The revenues, cost of goods sold, store support costs, activities that account for the store support costs, and activity-area usage of the three product lines are as follows: (Click the icon to view the information for the three product lines.) Read the requirements. Requirement 1. Use the simple costing system to prepare a product-line profitability report for FS. (Round the percentages to the nearest hundredth percent, X.XX%.) Milk and Frozen X Baked Goods Fruit Juice Products Total Data Table Revenues Costs Cost of goods sold Milk and Baked Goods Fruit Juice Frozen Products Store support Financial data Total costs Operating income Operating income/Revenues Requirements Revenues $ 58,000 $ 64,500 $ 50,000 Cost of goods sold $ 37,000 $ 45,000 $ 36,000 Store support $ 11,100 $ 13,500 $ 10.800 Activity-area usage (cost-allocation base) Ordering (purchase orders) 35 30 20 Delivery (deliveries) 85 45 30 Shelf-stocking (hours) 175 155 25 Customer support (items sold) 12,000 16,000 7.000 Under its simple costing system, FS allocated support costs to products at the rate of 30% of cost of goods sold. 1. Use the simple costing system to prepare a product-line profitability report for FS 2. Use the ABC system to prepare a product-line profitability report for FS. 3. What new insights does the ABC system in requirement 2 provide to FS managers? Print Done Done Print Done