Question: Prepare a product - line profitability report for SFS using the ( A B C ) information the controller provides. Note: Loss amounts
Prepare a productline profitability report for SFS using the A B C information the controller provides.
Note: Loss amounts should be indicated by a minus sign. Round operating margin loss to decimal places ie should be entered as Round all other answers to nearest whole dollar. Supermart Food Stores SFS has experienced net operating losses in its frozen food products line in the last few periods. Management believes that the store can improve its profitability if SFS discontinues frozen foods. The operating results from the most recent period are:
SFS estimates that store support expenses, in total, are approximately of revenues.
The controller says that not every sales dollar requires or uses the same amount of store support activities. A preliminary analysis reveals store support activities for these three product lines are:
The controller estimates activitycost rates for each activity as follows:
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