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:

	Frozen Foods	Baked Goods	Fresh Produce
Sales	$ 126,000	$ 98,000	$ 165,000
Cost of goods sold	110,000	72,000	115,000

SFS estimates that store support expenses, in total, are approximately 14% 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:

Activity (cost driver)	Frozen Foods	Baked Goods	Fresh Produce
Order processing (number of purchase orders)	11	43	107
Receiving (number of deliveries)	9	56	126
Shelf-stocking (number of hours per delivery)	4	0.2	7
Customer support (total units sold)	27,000	40,000	80,000

The controller estimates activity-cost rates for each activity as follows:

Order processing	$ 80	per purchase order
Receiving	108	per delivery
Shelf-stocking	15.00	per hour
Customer support	0.11	per item

Required:

1. Prepare a product-line profitability report for SFS under the current costing system.

2. Prepare a product-line profitability report for SFS using the ABC information the controller provides.

Prepare a product-line profitability report for SFS under the current costing system. (Loss ar minus sign. Round operating margin (loss) to 2 decimal places (i.e. 0.2134 should be entere Prepare a product-line profitability report for SFS using the ABC information the controller provides. (Loss amou indicated by a minus sign. Round operating margin (loss) to 2 decimal places (i.e. 0.2134 should be entered as Round all other answers to nearest whole dollar.)