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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 the store

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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 the store can improve its profitability if SFS discontinues frozen foods. The operating results from the most ecent period are Sales Cost of goods sold Frozen Foods $135, eee 119, eee Baked Goods $120,000 88,800 Fresh Produce $184,000 128,eee FS estimates that store support expenses, in total, are approximately 17% of revenues. The controller says that not every sales dollar requires or uses the same amount of store support activities. A preliminary analysis eveals store support activities for these three product lines are: Activity cost driver Order processing number of purchase orders) deceiving number of deliveries) Shelf-stocking number of hours per delivery) Customer support (total units sold) Erozen Foods 9 18 Baked Goods 47 59 8.1 22.00 Fresh Produce 104 132 26,000 64,000 The controller estimates activity cost rates for each activity as follows: ondergen keceiving Shockin Sant $ 14 per purchase order 185 per delivery 12.B per hour 0.22 per te Required: Prepare a produce ne profitability report for SFS under the current casting system Prepare a product-line profitably report for ses using the ABC Information the controller provides Complete this question by entering your answers in the tabs below

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