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SFS estimates that store support expenses, in total, are approximately 20% 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: Activity (cost driver) Frozen Food Baked Goods Fresh Produce Order processing (number of purchase orders) 10 45 100 Receiving (number of deliveries) 12 55 120 Shelf-stocking (number of hours per delivery) 2 0.5 4 Customer support (total units sold) 30,000 40,000 86,000
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SFS estimates that store support expenses, in total, are approximately 20% of revenues. The controll...
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