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 Food Baked Goods Fresh Produce Sales $ 129,000 $ 102,000 $ 170,000 Cost of goods sold 111,000 75,000 118,000 SFS estimates that store support expenses, in total, are approximately 20% 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 Food Baked Goods Fresh Produce Order processing (number of purchase orders) 15 44 105 Receiving (number of deliveries) 8 55 127 Shelf-stocking (number of hours per delivery) 3 0.3 5 Customer support (total units sold) 32,000 35,000 70,000 The controller estimates activity-cost rates for each activity as follows: Order processing $ 82 per purchase order Receiving 109 per delivery Shelf-stocking 13.00 per hour Customer support 0.26 per item