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Ordering $104 per purchase order Delivery and receipt of merchandise $82 per delivery Shelf-stocking $18 per hour Customer support and assistance $0.24 per item soldMilk and Frozen Baked Goods Fruit Juice Products Financial data Revenues $ 58,500 $ 64,500 $ 52,000 Cost of goods sold 39,000 $ 46,000 33,000 Store support 11,700 $ 13,800 $ 9,900 Activity-area usage (cost-allocation base) Ordering (purchase orders) 20 15 5 Delivery (deliveries) 100 40 35 Shelf-stocking (hours) 195 170 15 Customer support (items sold) 15,500 19,375 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?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: i (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 Baked Goods Fruit Juice Products Total Revenues Costs Cost of goods sold Store support Total costs Operating income Operating income/Revenues % % % % Requirement 2. Use the ABC system to prepare a product-line profitability report for FS. (Round the percentages to the nearest hundredth percent, X.XX%.)Milk and Frozen Baked Goods Fruit Juice Products Total Revenues Costs Cost of goods sold Ordering Delivery Shelf-stocking Customer support Total costs Operating income Operating income/Revenues % % % % Requirement 3. What new insights does the ABC system in requirement 2 provide to FS managers? used less of the total resources in each activity area. Hence, under ABC, The line drops sizably in profitability when ABC is used. The product line uses more resources in each activity area. In contrast, is much more profitable. Fitzgerald Supermarkets may want to explore price increases on