Answered step by step
Verified Expert Solution
Question
1 Approved Answer
of C Exam Family Supermarkets (FS) has decided to increase the size of its Adelaide store. It wants information about the profitability of individual product
of C Exam Family Supermarkets (FS) has decided to increase the size of its Adelaide store. It wants information about the profitability of individual product lines: soft drinks, fresh produce and packaged food. FS provides the following data for 2020 for each product line: Heidi Quiz navigu 1 4 Sayed Ha Revenues Cost of goods sold Cost of bottles returned Soft drinks Fresh produce Packaged food $317,400 $840,240 $483,960 $240,000 $600,000 $360,000 $4,800 $0 SO 190 257 Number of purchase orders 183 placed Number of deliveries received 262 172 12 Hours of shelf-stocking time 469 Items sold 394 621 668 60887 79838 57092 7 8 Finish attempt Time left 1:58:4 Items sola 179838 FS also provides the following information for 2020: Activity Description of activity Total support costs Bottle returns Returning of empty $4,800 Cost-allocation base Direct tracing to bottles to store soft drink line Ordering Delivery Placing of orders for $62,400 630 purchase purchases orders Physical delivery and receipt of merchandise: $100,800 828 deliveries Shelf-stocking Stocking of merchandise $69,120 Customer support Total on store shelves and ongoing restocking Assistance provided to $122,880 customers, including checkout and bagging $360,000 1758 hours of shelf- stocking time 197817 items sold FS currently allocates store support costs (all costs other than cost of goods sold) to product ach product line. If ES allocates store support costs deliveries Shelf-stocking Customer support Total receipt of merchandise Stocking of merchandise $69,120 on store shelves and ongoing restocking Assistance provided to $122,880 customers, including checkout and bagging $360,000 1758 hours of shelf- stocking time 197817 items sold FS currently allocates store support costs (all costs other than cost of goods sold) to product lines on the basis of cost of goods sold of each product line. If FS allocates store support costs (all costs other than cost of goods sold) to product lines using an ABC system, calculate and enter the amount of difference in operating profit as a percentage of revenues for Fresh produce in the answer space below
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started