Studemeir Paint & Floors (SPF) has experienced net operating losses in its Other Flooring Products line during the last few periods. SPF's management team thinks that the store will improve its profitability if it discontinues the Other Flooring Products line. The operating results from the most recent period are: Paint and Paint Supplies $290,300 119,000 Other Flooring Products $167,000 131,000 Carpet $258,000 169,000 Sales Cost of goods sold SPF estimates that store support expenses are approximately 25% of revenues. Harish Rana, SPF's controller, states that while every sale has one purchase order, not every sales dollar requires or uses the same amount of store support activities. He conducts a preliminary investigation and his results and analysis are as follows: Activity (cost driver) Order processing number of purchase orders) Receiving (number of deliveries) Customer support (hours required per sale) Paint and Paint Supplies 313 46 0.50 Carpet 214 200 4.0 Other Flooring Products 120 70 0.65 Harish estimates activity-cost rates for each activity as follows: Order processing Receiving Customer support $145 per purchase order 200 per delivery 20 per hour Required: 1. Prepare a product-line profitability report for SPF under the current costing system. 2. Prepare a product-line profitability report for SPF using the ABC information the controller provides. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Tronar nraduc fitabilitheronort for an under the current cortina Cucton hould ha indicated hun Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a product-line profitability report for SPF under the current costing system. (Loss amounts should be indicated by a minus sign. Round operating margin (loss) to 2 decimal places (i.e. 0.2134 should be entered as 21.34%).) Paint & Paint Carpet Other Flooring Supplies Products Operating income (loss) Operating margin (loss) % % % Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a product-line profitability report for SPF using the ABC information the controller provides. (Loss amounts should be indicated by a minus sign. Round operating margin (loss) to 2 decimal places (i.e. 0.2134 should be entered as 21.34%). Round all other answers to nearest whole dollar.) Paint & Paint Other Flooring Carpet Supplies Products Store support: Total store support Operating income (loss) Operating margin (loss) % % %