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 $ 127,000 110,000 Baked Goods $93,000 68,000 Fresh Produce $ 173,000 121,000 SFS estimates that store support expenses, in total, are approximately 19% 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). Order processing (number of purchase orders) Receiving (number of deliveries) Shelf-stocking (number of hours per delivery) Frozen Baked Fresh Foods Goods Produce 10 47 101 10 51 126 4 0.4 20,000 32,000 64,000 Customer support (total units sold) The controller estimates activity-cost rates for each activity as follows: Order processing $ 78 per purchase order Receiving Shelf-stocking 110 14.00 per delivery per hour Customer support 0.30 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 (.0. 0.2134 should be entered as 21.34%).) 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%).) Operating income (loss) Operating margin (loss) Frozen Food Baked Goods Fresh Produce % Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 the controller provides. 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.) Store support Total store support cost Operating income (loss) Operating margin (loss) Frozen Food Baked Goods Fresh Produce < Required 1 % Required 2 %