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 $295,000 165,000 Other Flooring Products $167,900 135,250 Carpet $214,900 150,000 Sales Cost of goods sold SPF estimates that store support expenses are approximately 24% 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 425 50 0.50 Carpet 150 120 8.0 Other Flooring Products 100 60 0.75 Harish estimates activity-cost rates for each activity as follows: Order processing Receiving Customer support $140 per purchase order 180 per delivery 18 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