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	Baked Goods	Fresh Produce
Sales	$ 288,000	$ 493,000	$ 524,000
Cost of goods sold	271,000	399,000	404,000

SFS estimates that store support expenses, in total, are approximately 13% 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 Foods	Baked Goods	Fresh Produce
Order processing (number of purchase orders)	11	73	92
Receiving (number of deliveries)	8	69	319
Shelf-stocking (number of hours per delivery)	5	0.1	6
Customer support (total units sold)	22,000	39,000	78,000

The controller estimates activity-cost rates for each activity as follows:

Order processing	$ 96	per purchase order
Receiving	122	per delivery
Shelf-stocking	26.00	per hour
Customer support	0.27	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.