Question 3 (18 marks) Able Supermarkets operates at capacity and decides to apply ABC analysis to two product lines: bread and juices. It identifies four activities and their activity cost rates as follows: Ordering $95 per purchase order Delivery $76 per delivery Shelf-stocking $19 per hour Customer Support \$0.15 per item sold The revenues, cost of goods sold, store support costs, activities that account for the store support costs and activity area of the two products are as follows: Under the simple costing system, the firm allocated costs to products at the rate of 30% of cost of goods sold. Required: 1) Use the simple costing system to prepare a product-line profitability report including the calculation of return on revenue. ( 6 marks) 2) Use the ABC system to prepare a product-line profitability including the calculation of return on revenue. ( 6 marks) 3) Comment on the results from 1 and 2. (3 marks) 4) Make recommendations to improve the profitability of the least profitable product under ABC to at least 3% return on sales