Super Bookstore (SB) is
a large city bookstore that sells books and music CDs, and has a café. SB operates at capacity and
allocates selling, general, and administration (S, G & A) costs to each product line using the cost of
merchandise of each product line. SB wants to optimize the pricing and cost management of each
product line. SB is wondering if its accounting system is providing it with the best information for making
such decisions.