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Supermart Food Stores ( SFS ) has experienced net operating losses in its frozen food products line in the last few periods. Management believes that

Supermart Food Stores (SFS) has experienced net operating losses in its frozen food products line in the last few periods. Management believes that the store can improve its profitability if SFS discontinues frozen foods. The operating results from the most recent period are:
Sales
Frozen Foods
Baked Goods
Fresh Produce
cost of goods sold
$238,6e
$ 381,800
3.416,8e
SFS estimates that store support expenses, in total, are approximately 13% 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:
\table[[Activity (cost driver),Frozen,Baked,Fresh],[Order processing (number of purchase orders),11,62,107],[Receiving (number of deliveries),13,75,254],[Shelf-stocking (number of hours per delivery),5,0.2,7],[Customer support (total units sold),27, eea,38,809,76,060]]
The controller estimates activity-cost rates for each activity as follows:
\table[[Order processing,$98,per purchase order],[Receiving,112,per delivery],[Shelf-stocking,29.80,per hour],[Customer support,0.25,per item]]
Required:
Prepare a product-line profitability report for SFS under the current costing system.
Prepare a product-line profitability report for SFS 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 SFS 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.)
\table[[,Frozen Food,Baked Goods,Fresh Produce],[,,,,,,],[,,,,,,],[,,,,,,],[,,,,,,],[,,,,,,],[,,,,,,],[,,,,,,],[,,,,,,],[Store support:,,,,,,],[Total store support cost,,,,,,],[Operating income (loss),,,,,,]]
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