Studemeir Paint & Floors $($SPF$)$ is a retail store specializing in home improvement. The store 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 stops carrying the Other Flooring Products line. The operating results from the most recent period are:

Paint and Paint Supplies Carpet Other Flooring Products

Sales $ $329,000$ $ $225,000$ $ $186,000$

Cost of goods sold $121,000153,000148,000$

SPF estimates that store operating expenses are approximately $23\%$ 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$)$ Paint and Paint Supplies Carpet Other Flooring Products

Order processing $($number of purchase orders$)415120130$

Receiving $($number of deliveries$)3921566$

Customer support $($hours required per sale$)0\mathrm{.}407\mathrm{.}00\mathrm{.}50$

Harish estimates activity$-$cost rates for each activity as follows:

Order processing $ $140$ per purchase order

Receiving $174$ per delivery

Customer support $20$ 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.