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: Prozen Food Baked Goods Fresh Produce Salon $ 241,000 $ 390,000 $ 419,000 cont of goods sold 223,000 315.000 323,000 SFS estimates that store support expenses, in total, are approximately 14% 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: Prozen Taked Fresh Activity (cost driver) Foods Coods Produce Order processing number of purchase orders) 13 65104 Receiving (number of deliveries) 14 Shelf-stocking number of hours per delivery) 0.3 7 Customer support (total units sold) 24,000 32,000 64.000 The controllier estimates activity-cost rates for each activity as follows: 70 257 3 Order processing S99 per purchase order Receiving 110 per delivery Shelf-stocking 18.00 per hour Customer support 0.25 per item Required: 1. Prepare a product-line profitability report for SFS under the current costing system Prenare Andurteline nobilitu rent for SES in the ARC information the rannar rides 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 (1.e. 0.2134 should be entered as 21 Round all other answers to nearest whole dollar... Baked Goods $ S $ Frozen Food 241,000 223,000 18,000 390,000 315,000 75,000 Fresh Produce 419,000 323,000 96,000 x S $ $ Sales Cost of goods sold Gross loss Store support: Order processing Receiving Shelf-stocking Customer support 1,287 1,540 54 6,000 6,435 7,700 5 8,000 10,296 28,270 126 16,000 Total store support cost Operating income (loss) Operating margin (loss) 8,881 9,119 22,140 52,860 54,692 41,308 $ S % % 2 Dawn 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 (.e. 0.2134 should be entered as 21.34%)). $ Frozen Food 241,000 223,000 18,000 >> Baked Goods $ 390,000 315,000 $ 75,000 Fresh Produce $ 419,000 323,000 $ 96,000 $ Sales Cost of goods sold Gross margin Store support Operating income (loss) Operating margin (loss) % & Return Required 2 >