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Managerial accounting

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October 2nd, 2022

Required:
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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