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Gabriel Supermarkets (GS) operates at capacity and decides to apply ABC analysis to three product lines: baked goods, mik and truit juloe, and trozen toods.

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Gabriel Supermarkets (GS) operates at capacity and decides to apply ABC analysis to three product lines: baked goods, mik and truit juloe, and trozen toods. It identifies four activities and their activity cost rates as follows: (3). (Click the icon to view the activity cost rates.) The ods sold, store support costs, activities that account for the store support costs, and activity.area usage of the three product ines are as followis. Requirothonts Requirement 1. Use the simple costing system to prepare a product-line profitability report for GS. (Round the percentages to the rinarest hundietih percent, Gabriel Supermarkets (GS) operates at capacity and decides to apply ABC analysis to three product lines: baked goods, milk and fruit juice, and froz. identifies four activities and their activity cost rates as follows: . J. (Click the icon to view the activity cost rates.) -area usage of the three product lines are at The Activity cost rates R:B (Gitux uit Roquirements Requirement Activity cost rates Information for the three product lines Under its simple costing system, GS allocated support costs to proaucts at tne rate or 30% of cost of goods sold. (Click the icon to view the information for the three product lines.) Requirements. (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 line (Click the icon to view the information for the three product lines.) Requirements Requirement 3. What new insights does the ABC system in requirement 2 provide to GS managers? The line drops sizably in profitability when ABC is used. The product line uses more resources in each activity area. in contrast, used less of the total resources in each activity area. Hence, under ABC. is much more proftable. Gabriel Supermark mav want to explore orice increases on

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