This Question: 1 pt 1 of 4 (3 complete) This Quiz: i Data Table - X Kitty Corner operates a pet supply superstore in Atlanta with three main product lines: food, toys, and accessories. e three product lines: Kitty Corner allocates common selling, general, and administration (SG&A) costs to each product line using the cost of merchandise of each product line. Department manager salaries, while considered SG&A, are direct and are assigned directly to each product line. The company wants to optimize the pricing and cost management of each product line and istration costs: is wondering whether its accounting system is providing it with the best information for making such decisions. Kitty Corner SG&A Costs i Data Table X for the Year Ended December 31, 2020 Purchasing department expense $ 176,000 Ael tore space for each product line. Receiving department expense 260,000 Kitty Corner nd in Selling expense 891,000 Product-Line Information Rent 582,800 for the Year Ended December 31, 2020 Store manager's salary 198,000 Food Toys Accessories Total Utilities 62,040 Revenues 4,950,000 $ 1,980,000 $ 2,970,000 $ 9,900,000 Total $ 2, 169,840 Cost of merchandise $ 2,250,000 $ 900,000 $ 1,350,000 $ 4,500,000 pen square foot of store space for each product I Salary of department manager 54,000 $ 60,000 $ 56,000 $ 170,000 Print Done Number of purchase orders placed 825 275 1,650 2,750 Number of boxes received 3,000 1,000 6,000 10,000 Square feet of store space 12,300 2,400 4, 100 18,800 i Requirement X Print Done 1. Prepare an income statement for Kitty Corner, by product line and in total, allocating common SG&A expenses using cost of merchandise. Calculate the profit per square foot of store space for each product line. Gross margin . Identify an improved method for allocating costs to the three product lines. Explain. Use the method for allocating SG&A costs that you propose to Selling, general, & administrative costs prepare new product-line income statements. Calculate the profit per square foot of store space for each product line. Compare your results to the results in Anorating income /Incel requirement 1. Choose from any list or enter any number in the input fields and then continue to the next question. 3. What recommendations would you make to the store manager based on the results of the activity-based costing analysis