Sales and gross margins of the three divisions.

Fruits Dairy products Beer Total

Revenues $497,700 $2,100,000 $1,562,400 $4,160,100

Cost of products sold 320,000 1,600,000 1,280,000 3,200,000

Gross margin $177,700 $ 500,000 $ 282,400 $ 960,100

The cost drivers for each activity are as follows:

Ordering-Number of purchase orders

Delivery-Number of deliveries

Shelf-stocking-Hours of stocking time

Customer support-Number of items sold

Productmonitoring-Direct trace to the ProductDivision

You have determined the following information about the cost drivers:

Fruits Dairy products Beer Total

Number of purchase orders 1,400 3,300 1,470 6,170

Number of deliveries 1,240 8,770 1,190 11,200

Hours of shelf-stocking 218 2,120 1,053 3,391

Items sold 50,100 440,800 122,700 613,600

The total cost of each activity was as follows:

Ordering $67,870

Delivery 179,200

Shelf-stocking 128,858

Customer support 245,440

Productmonitoring 178,632

Total $800,000

Usingthese informationandABC, calculate the operating income and operating income as a percentageof sales foreveryproduct. (For example, note that each purchase order costs$67,870/6,170 =$11 to process.)