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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 recent period are: Sales Cost of goods sold Frozen Foods $129,000 111,000 Fresh Baked Goods Produce $102,000 $170,000 75,000 118,000 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: Baked Fresh Activity (cost driver) Frozen Foods Goods Produce Order processing (number of purchase orders) 205 Receiving number of deliveries) 127 Shelf-stocking number of hours per delivery) customer support (total unito nola) 32,000 35,000 70.000 15 8 44 55 3 0.3 5 The controlier estimates activity-cost rates for each activity as follows: Order processing Receiving Shelt stocking Customer support $ 82 per purchase order 109 per delivery 13.00 per hour 0.26 per iten equired: Prepare a product-line profitability report for SFS under the current costing system. - 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 indicate minus sign. Round operating margin (loss) to 2 decimal places (.e. 0.2134 should be entered as 21.34%).) Frozen Food Baked Goods Fresh Produce Operating income (loss) Operating margin (loss) % % Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a product-line profitability report for SFS using the ABC information the controller provides. (LOSS indicated by a minus sign. Round operating margin (loss) to 2 decimal places (1.e. 0.2134 should be enter Round all other answers to nearest whole dollar.) Frozen Food Baked Goods Fresh Produce Store support: Total store support cost Operating income (loss) Operating margin (loss) % % %

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