Granger Supermarkets (GS) 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: Ordering $98 per purchase order Delivery and receipt $81 per delivery of merchandise Shelf-stocking $22 per hour Customer support $0.18 per item sold and assistance The revenues, cost of goods sold, store support costs, the activities that account for the store support costs, and activity area usage of the three product lines are as follows. Milk and Fruit Juice Frozen Products $64,000 $52,500 $45,000 $36,000 $13,500 $10,800 Baked Goods Financial Data Revenues $58,000 Cost of goods sold $37,000 Store support $11,100 Activity area usage (cost-allocation base) Ordering (purchase orders) Delivery (deliveries) 85 Shelf-stocking (hours) 175 Customer support (items sold) 12,000 35 30 20 45 30 155 25 16,000 7,000 Under its simple costing system, GS allocated support costs to products at the rate of 30% of costs of goods sold. The next two questions pertain to Granger Supermarkets Question 5: What are the profits generated by the Baked Goods line of products using its simple costing system to prepare a product-line profitability report for GS. Group of answer choices a. A loss of $1,200 b. Profits of $1,200 c. A loss of $2,800 d. Profits of $14,000 Question 6: What are the profits generated by the Baked Goods line of products using an ABC system to prepare a product-line profitability report for GS? Group of answer choices a. $3,450 b. $8,650 C. -$6,425 d. -$9,225