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The reyenues,r cost of goods sold, store support costs, and activity area usage of the three product lines are as follows: Baked Milk and Frozen
The reyenues,r cost of goods sold, store support costs, and activity area usage of the three product lines are as follows: Baked Milk and Frozen Goods Fruit Juice Products Financial data: Revenues $63,400 $?5.6Cl $52,4l} Cost of goods sold 43 t"? 56,4 42,DD{} Store support 1 3 ,sso lasso 12,soa Activity area usage (cost driver): Ordering (purchase orders] 3U 25 13 Delivery (deliveries) 98 SIS 2 3 Shelfstocking {hours} 133 ms 24 Customer support (items sold) 13 ,SUU NLSDD Z900 There are no bottle returns for any of these three product lines. REQUIRED 1. Use the previous costing system (support costs allocated to products at the rate of 30% of cost of goods sold) to compute a product line protability report For FS. 2. Use the ABC system {ordering at $1M per purchase order, delivery at $96 per delivery, shelfstocking at $24 per hour, and customer support at $0.24 per item sold) to compute a product line protability report for PS. 3. 'What new insights does the ABC system in requirement 2 provide to F3 managers
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