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W Supermercado da Estrela has decided to increase the size of its store. It wants information about the protability of individual product lines: soft drinks,

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W Supermercado da Estrela has decided to increase the size of its store. It wants information about the protability of individual product lines: soft drinks, fresh produce, and packaged food. Revenues () 317,400 840,240 483,960 Cost of goods sold () 240,000 600,000 360,000 Cost of bottles returned () 4,800 0 0 Number of purchase orders placed 144 336 144 Number of deliveries received 120 876 264 Hours of selfstocking time 216 2,160 1,080 Items sold 50,400 441,600 122,400 Additional information for the current year: Description of activity Costallocation base costs Bottle returns Returning of empty bottles to store 4,800 Direct tracing to soft-drink line Ordering Placing orders for purchases 62,400 624 purchase orders Delivery Physical delivery and receipt of merchandise 100,800 1,260 deliveries Shelfstocking Stocking of merchandise on store shelves 69,120 3,456 hours of shelf-stocking time Customer support Assistance provided to customers (Le. checkout, bagging...) 122,880 614,400 items sold 360,000 Req uired: 1. The supermarket currently allocates store support costs to product lines on the basis of cost of goods sold of each product line. Calculate the operating income as a percentage of revenues for each product line. 2. If they use an ABC system, calculate the operating income as a percentage of revenues for each product line. 3. Comment on your answers above

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