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 Sales Cost of goods sold $ 129,000 111,000 Baked Goods Fresh Produce $ 102,000 75,000 $ 170,000 118,000 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: Frozen Baked Fresh Activity (cost driver) Foods Goods Produce Order processing (number of purchase orders) Receiving (number of deliveries) 15 44 105 8 55 127 Shelf-stocking (number of hours per delivery) Customer support (total units sold) 3 0.3 5 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 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a product-line profitability report for SFS under the current costing system. (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%).) Frozen Food Baked Goods Fresh Produce Operating income (loss) Operating margin (loss) % % % Prepare a product-line profitability report for SFS using the ABC information the controller provides. (Loss amounts indicated by a minus sign. Round operating margin (loss) to 2 decimal places (i.e. 0.2134 should be entered as 21. Round all other answers to nearest whole dollar.) Store support: Frozen Food Baked Goods Fresh Produce Total store support cost Operating income (loss) Operating margin (loss) % % %