Read the article of Star Computer Shop. Star Computer Shop Star Computer Shop (Star) sells computer...

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Read the article of "Star Computer Shop". Star Computer Shop Star Computer Shop (Star) sells computer products, mainly desktops (PC) and laptops, to small and medium size enterprises. The company is also the authorized dealer of one accounting software. Based on the contract with the accounting software company, Star is required to hire an instructor to support customers in using the software. Star allocates selling, general, and administration (S, G & A) costs to each product line using the cost of merchandise of each product line. Star's General Manager is very disappointed with the current business result. He wants to optimize the pricing and cost management of each product line and is wondering if its accounting system is providing the company with the best information for making such decisions. The following is a summary of the company's product line information and its selling, general and administration costs for six months period ended 31 December 2018. PC Laptop Accounting software Revenues $1,900,000 $1,250,000 $400,000 Cost of merchandise $1,501,000 $940,000 $275,000 Salary of software instructor $ 27,000 Number of purchase orders placed 180 270 280 Number of deliveries received 140 150 180 Salespeople work hours 1,000 1,400 1,500 Unit sold 210 105 250 Read the article of "Star Computer Shop". Star Computer Shop Star Computer Shop (Star) sells computer products, mainly desktops (PC) and laptops, to small and medium size enterprises. The company is also the authorized dealer of one accounting software. Based on the contract with the accounting software company, Star is required to hire an instructor to support customers in using the software. Star allocates selling, general, and administration (S, G & A) costs to each product line using the cost of merchandise of each product line. Star's General Manager is very disappointed with the current business result. He wants to optimize the pricing and cost management of each product line and is wondering if its accounting system is providing the company with the best information for making such decisions. The following is a summary of the company's product line information and its selling, general and administration costs for six months period ended 31 December 2018. PC Laptop Accounting software Revenues $1,900,000 $1,250,000 $400,000 Cost of merchandise $1,501,000 $940,000 $275,000 Salary of software instructor $ 27,000 Number of purchase orders placed 180 270 280 Number of deliveries received 140 150 180 Salespeople work hours 1,000 1,400 1,500 Unit sold 210 105 250