O M ICS WordProd Activation failed Mais Rew View Bbc ABCD AaBb AaBbce AaB Aal . T Normal No Spact... Heading 1 Heading 2 TA Title Subt Paragraph Styles TO T 11 .15 Family Supermarkets (FS) decides to apply ABC analysis to three product lines: baked goods, milk and fruit juice, and frozen foods. It identifies four activities and their activity cost rates as Ordering R100 per purchase order Delivery and receipt of merchandise RBD per delivery Shell-stocking R20 per hour Customer support and assistance 20 cents per item sold The revenues, cost of sales store support costs, and activity area usage of the three product liries are Baked goods Milk and fruit juice Frozen products R57 DDO R63 000 R38 ODDR47 000 R 11 400 R14 100 R52 000 R35 000 R10 500 Financial data Revenues Cost of sales Store support Activity area usage (cost allocation base) Ordering purchase orders) Delivery (deliveries) Shell stocking (hours) Customer support (items sold) 13 28 25 36 166 20 500 183 15 500 7900 Under the simple (traditional) costing system, FS allocated support costs to products at the rate of 30% of cost of sales. Required: 21 Use the ABC system to calculate the operating income for each of the products (21)