Managerial accounting
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1.Family Supermarkets currently allocates store support costs (all costs other than cost of goods sold) to product lines on the basis of cost of goods sold of each product line. Calculate the gross margin, the operating income and operating income as a percentage of revenues for each product line.
2. If FS allocates store support costs (all costs other than cost of goods sold) to product lines using an ABC system, calculate the gross margin, the operating income and operating income as a percentage of revenues for each product line.
3. Comment on your answers in requirements 1 and 2.
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Solution Summary
Excel file contains calculation of cost per unit using activity based costing. The expert examines a Family Supermarket who decided to increase the size.
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