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: Sales Cost of goods sold Frozen Foods $ 120,000 105,000 Baked Goods $ 91,000 67,000 Fresh Produce $ 158, 175 110,000 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) Order processing (number of purchase orders) Receiving (number of deliveries) Shelf-stocking (number of hours per delivery) Customer support (total units sold) Frozen Foods 10 12 2 30,000 Baked Goods 45 55 0.5 40,000 Fresh Produce 100 120 4 86,000 The controller estimates activity-cost rates for each activity as follows: Order processing Receiving Shelf-stocking Customer support $ 80 110 15.25 0.21 per purchase order per delivery per hour 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 b minus sign. Round operating margin (loss) to 2 decimal places (i.e. .2134 should be entered as 21.34%).) Frozen Food Baked Goods Fresh Produce Sales $ $ $ Cost of goods sold Gross margin Store support Operating income (loss) Operating margin (loss) $ 120,000 105,000 15,000 24,000 (9,000) % 91,000 67,000 24,000 18,200 5,800 158,175 110,000 48,175 31,635 16,540 $ $ $ % % Required 1 Required 2 Prepare a product-line profitability report for SFS using the ABC information the controller provides. (Loss amounts shoul indicated by a minus sign. Round operating margin (loss) to 2 decimal places (i.e. .2134 should be entered as 21.34%). Round your other answers to nearest whole dollar.) Frozen Food Baked Goods Fresh Produce Sales $ $ 91,000 $ 120,000 105,000 15,000 67,000 24,000 158,175 110,000 48,175 $ $ Cost of goods sold Gross margin Store support: Order processing Receiving Shelf-stocking Customer support 800 $ $ 3,600 6,050 8,000 13,200 1,320 6,300 8,400 18,060 8,420 18,050 39,260 Total store support cost Operating income (loss) Operating margin (loss) % % %