I just need operating income and margin
Supermart Food Stores (SFS) has experienced net operating losses In Its frozen food products line In the last few perlods Management belleves that the store can Improve Its profitablity If SFS discontinues frozen foods. The operating resuits from the most recent period are: Frozen FoodsBaked Goods Produce $228,868 349,808 $387,888 298,800 Sales Cost of goods sold 284,800 282,800 SFS estimates that store support expenses, in total, are approximately 14% 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) s Baked Goods Fresh Frozen F 181 238 Order processing (number of purchase orders) Receiving (number of deliveries) Shelf-stocking (number of hours per delivery) Cus tomer support (total units sold) 50 73 9.5 32,808 16 29,888 64,808 The controller estimates activity-cost rates for each activity as follows: Order processing Receiving Shelf-stocking Cus tomer support s 186 per purchase order 119 per delivery 18.88 per hour .29 per item Required: 1. Prepare a product-ine profitablity report for SFS under the current costing system. 2. Prepare a product-lne profitablity report for SFS using the ABC Information the controller proides. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a product-line profitability report for SFS using the ABC information the controller provides. (Loss amounts should be indicated by a minus sign. Round operating man (loss) to 2 decimal places (ie, 0.2134 should be entered as 21.34%). Round all other answers to nearest whole dollar 5 220,000 204,000 16,000 5 349.000 282,000 5 67.000 5 387,000 298,000 5 89,000 of goods sold Gross margin Store support Order processing 954 1,190 1.080 8,410 5,300 10,706 28322 29,988 18,580 Shelf-stocking Customer support 9,280 11,634 Total store support cost Operating income (loss) Operating margin loss) 23.924 87,578
