Management Accounting Australian Mart (AM) operates at capacity and decides to apply ABC analysis to three product lines: pastry and cakes, Dairy Products, and meat products. It identifies four activities and their activity cost rates as follows: Ordering $100 per purchase order Delivery and receipt of merchandise $ 80 per delivery Shelf-stocking $ 20 per hour Customer support and assistance $ 0.30 per item sold The revenues, cost of goods sold, store support costs, the activities that account for the store su osts , and activity-area usage of the three product lines are as follows: Particulars Pastry and Dairy Products Meat cakes Products Fundamentals Revenue 65000 50000 60000 Cost of Goods sold 35000 45000 45000 Store support 11000 15100 10500 Activities (Cost allocation base) . Ordering (purchasing order) 30 25 13 . Delivery (Deliveries) 98 36 28 . Shelf-stocking (hours) 183 166 24 Customer support (item sold) 15500 20500 7900 Under its simple costing system, AM allocated support costs to products at the rate of 30% of cost of goods sold Require: 1. Elaborate development, challenges and application of activity-based costing in detail (500 words; minimum five references) 2. Use the simple/traditional costing system to prepare a product-line profitability report for AM. 3. Use the ABC system to prepare a product-line profitability report for AM. I 4. What new insights does the ABC system in requirement provide to AM managers (300words)? "ABC system motivates sustainability and better decision making in organization" would you agree? Justify (500 words; minimum five references). Page | 3