Life Style (LS) is a large super store that sells organic food (OF), home appliances (HA), and has a caf (CA). LS operates at capacity and allocates selling, general, and administration (S, and A) costs to each product line using the cost of merchandise of each product line. LS wants to optimize the pricing and cost management of each product line. LS is wondering if its current accounting system is providing it with the best information for making such decisions. The product line information for the year ended 30 September 2015 is presented below Life Style Store Product line information for the year ended 30 September 2015 Organic Home Food Appliances Cafe Total Revenue Cost of merchandise Cost of cafe cleaning Number of purchase orders placed Number of deliveries received Hours of shelf stocking time Items sold $3,720,480 $2,315,360 S736,216 $6,772,056 $2,656,727 S1,722,311 $556,685 S4,935,723 $18,250$18,250 7,300 4,700 39,000 368,108 607,892 2,500 1,700 14,000 124,016 115,768 2,800 1,400 15,000 2,000 1,600 10,000 Life Style Store incurred the following selling, general and administration costs for the year ended 30 September 2015 Purchasing department expenses Receiving department expenses Shelf stock labour expense Customer support expenses (cashiers and floor employees) $474,500 $432,400 $487,500 $91,184 $1,485,584 LS sells HA123, one of its home appliances, which has been suffering losses in the past few years. Summary data from its 2015 income statement are as follows Life Style (LS) is a large super store that sells organic food (OF), home appliances (HA), and has a caf (CA). LS operates at capacity and allocates selling, general, and administration (S, and A) costs to each product line using the cost of merchandise of each product line. LS wants to optimize the pricing and cost management of each product line. LS is wondering if its current accounting system is providing it with the best information for making such decisions. The product line information for the year ended 30 September 2015 is presented below Life Style Store Product line information for the year ended 30 September 2015 Organic Home Food Appliances Cafe Total Revenue Cost of merchandise Cost of cafe cleaning Number of purchase orders placed Number of deliveries received Hours of shelf stocking time Items sold $3,720,480 $2,315,360 S736,216 $6,772,056 $2,656,727 S1,722,311 $556,685 S4,935,723 $18,250$18,250 7,300 4,700 39,000 368,108 607,892 2,500 1,700 14,000 124,016 115,768 2,800 1,400 15,000 2,000 1,600 10,000 Life Style Store incurred the following selling, general and administration costs for the year ended 30 September 2015 Purchasing department expenses Receiving department expenses Shelf stock labour expense Customer support expenses (cashiers and floor employees) $474,500 $432,400 $487,500 $91,184 $1,485,584 LS sells HA123, one of its home appliances, which has been suffering losses in the past few years. Summary data from its 2015 income statement are as follows
