This Test: 100 pts possible This Question: 12 pts 10 of 26 (8 complete) Granger Supermarkets (CS) found that its ABC analysis provided imp Insights. (9 extends the analysis to cover three more product lines baked goods, milk and fruit juice, and frozen products. It identities four activities and the activity cost rates for each activity is provided ((Cc the icon to new the activity cool rates) The nevena ", cost of goods wold, store support costs, and activity area usage of the three product lines are as follows ijClick the icon to view the instore tion for the three product lines.) ment 1. Use the simple costing system to prepare a product-line pry ality report for G3 (Round the percentages to two decimal places, XXXX. Use parentheses or a minus sign for an operating loss.) () Info for the three product lines Milk and Fruit Frozen Baked Goods Janice Products Tots Revenues 61,500 77 500 60 500 Milk and Fruit Frozen Costs Baked Goods Juice Products Cont of pooda sold 36,000 43.090 34.000 Financial data Store support 10.800 14 400 10. 20 Revenues 61,500 S 77 500 $ 60 500 Total cries Cost of goods sold 38,000 S 48 000 5 34 000 10 800 S 14 400 S 10.200 Operating Incom Stare support Operating Income/Rev Activity area usage (cost diver) Ordering (purchase orders) 25 20 15 Requirement 2. Use the ABC system to prepare a product-line profit ofity report for OS. (Round the percentages to two decimal places, XXX% Live parentheses or a minus sign for an operating loss ) Delivery (deliveries) 90 35 30 Milk and Fruit Frozen Baked Goods Juice an Products Shell-stocking (hours) 180 Revenues 61.500 5 77.500 5 60.500 Customer support (Rems sold) 13.500 17.500 8 000 Costs Activity cost rates X Under its simple costing system, GS allocated support costs to products at the rate of 30% of Can of goods gold 36 000 49,000 34.000 cost of goods gold There are no bottle returns for any of these three product lines Ordering Ordering $102 per purchase order Delivery Delivery and receipt of marchandes S78 per delivery Print Done Shell-docking Shell-stocking $21 per hour Customer support and assistance $0.22 per item sold Customer support Total costa Prin Done Operating Income Operating income/Reven uzirement 3. What new insights does the ABC system in requirement 2 provide to CS managers? The line drops sizably in profitability when ABC is used The product line uses in each activity area. In contrast, used less of the total resources in each activity area. Hence, under ABC, is much more profitable. Granger Supermarkets may want to explore price increases on Enter any number in the edit fields and then continue to the next