Fitzgerald Supermarkets (FS) operates at capacity and decides to apply ABC analysis to three productlines: bakedgoods, milk and fruitjuice, and frozen foods. It identifies four activities and their activity cost rates asfollows:

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(Click the icon to view the activity costrates.)

Therevenues, cost of goodssold, store supportcosts, the activities that account for the store supportcosts, andactivity-area usage of the three product lines are asfollows:

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(Click the icon to view the information for the three productlines.)

Requirements

1.

Use the simple costing system to get aproduct-line profitability report for FS.

2.

Use the ABC system to get a product-line profitability report for FS.

3.

What new insights does the ABC system in requirement