Please help Thank you

Question 3 (25 marks) Computer Pro is a distributor of Easycalculate Accounting Software'. The company sells the accounting software under two product lines, namely, the home version and the professional version. Computer Pro is also the authorized dealer of a computer game. Based on the contract with the computer game developer, Computer Pro is required to pay an annual license fee for selling the computer game. The company has established one indirect cost pool-business support costs, and these costs are allocated to cach product line using the cost of merchandise of each product. After the review of the 2018 business results, the general manager of Computer Pro wants to optimize the pricing and cost management of each product line. He is wondering if the current accounting system is providing the company with the best information for making such decisions The management accountant has prepared the following information relating to company's product line and its business support activities for year 2018. Home Professional Computer Game $3,800,000 $3,002,000 $2,500,000 $1,880,000 Revenues Cost of merchandise Annual license fee Number of purchase orders placed Number of deliveries received Salespeople work hours Unit sold 180 140 1.000 210 270 150 1,400 105 $800,000 S550,000 $ 54,000 280 180 1,500 250 The total business support costs for the year are as follows: Purchasing department expenses Receiving department expenses Sales and marketing department expenses After-sale service expenses (repairs, product retums, etc.) $410,000 400.000 550.000 60,000 S1.420.000 Required: (a) (7 marks) Use the current simple costing system (i.e. using the cost of merchandise to allocate business support costs) to prepare the product line income statements of each product showing the profitability %. Show all your workings. (b) (7 marks) Use the activity based costing system to prepare the product line income statements for each product showing the profitability %. Show all your workings