Seven Supermarkets (75) has decided to increase the size of its Store. It wants information about the profitability of individual product lines: soft drinks, fresh produce and package food. 7S provides the following data for the year 2016 for each product line Soft drinks Fresh produce Packaged food 317 400 240 000 4 800 In Revenues Cost of good sold Cost of bottles returned Number of purchase orders placed |144 Numbers of deliveries received Hours of shelf-stocking time Items sold 840 240 600 000 0 336 876 2 160 441 600 483 960 360 000 0 144 264 1080 122 400 120 216 50 400 7S also provides the following information for the year 2016 Description of activies Total costs Cost driver 4 800 Activities Bottle returns Returning of empty bottles to store Ordering Delivery Shelf-stocking Customer support|Assistance provided to customers Direct tracing to soft- drink line 624 purchase orders Placing of orders for purchase 62 400 Physical delivery and receipt for merchandise Stocking of merchandise on store shelves 69 120 and ongoing restocking 100 800 1260 deliveries 3 456 hours of stocking time 122 880 614 400 items sold including check out and bagging 1/ Seven Supermarkets currently allocate store supports costs (all costs other than cost of goods sold) to product lines on the basis of costs of goods sold of each product line. Calculate the full cost, the operating profit and the operating profit ratio 2/ If 7S allocates store support costs (all costs other than costs of goods sold) to product lines using an ABC system, Calculate the full cost, the operating profit and the operating profit ratio for each product lines. 3/ What is the most relevant approach? Explain why (give at least two reasons)