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Studemer Point & Floors (SPF) has experienced net operating losses in its Other Flooring Products line during the last few periods. SPF's management team thinks

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Studemer Point & 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 applies Carpet 5193,700 0210,000 127,000 Other Flooring Products $197,000 150,000 sales Coat of goods sold SPF estimates that store support expenses are approximately 25% of revenues. Harish Rana, SPF 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: Motivity cont driver) Order processing (number of purchase orders) Receiving (number of deliveries) Custom wupport (hours required per wale) Paint and Paint Bupplies 385 37 0.30 Carpet 133 175 6.0 Obec Flooring Prodot 120 59 Harish estimates activity.cost rates for each activity as follows: Order processing Rovine Customer support 9129 per purchase order 105 per delivery 24 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. Prepare a product-line profitability report for Pe under the current costing system. (los amour ld be indicated by a Order Receiving Customer support 185 per delivery 24 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 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 (le. 0.2134 should be entered as 21.34%).) Other Flooring Products $ 197,000 Paint & Paint Supplies 193,700 158,000 $ 35,700 Carpet $ 218,000 434,000 $ (216,000) $ 107.000 Sales Cost of goods sold Gross margin Store support Operating income (loss) Operating margin (oss) % Roquod Required 2 > Customer support 24 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 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 (.e. 0.2134 should be entered as 21.34%). Round all other answers to nearest whole dollar.) Paint & Paint Supplies Carpet Other Flooring Products $ 0 $ 0 $ 0 Store support: Total store support Operating Income (5) Operating margin (los) (Required 1 Route

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