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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
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: Frozes Toode $127.000 110,000 Baked Good 593,000 68,000 Tresh Produce $133,000 121,000 Cost of goods sold SPS estimates that store support expenses, In total, are approximately 19% 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 Trual Activity (cont driver) Troen Foods Produce Order processing number of purchase ordeni 10 47 101 Receiving number of deliveries 10 51 126 Shelt stocking (number of hours per delivery 4 4 Customer support (total units wold) 20,000 32,000 64,DDD Good The controller estimates activity.cost rates for each activity as follows: Order proces Receiving Shelt-atocking Customer support 5 78 per purchase order 110 per delivery 14.00 per hoe 0.30 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 SeS 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 using the ABC information the controller provides. (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%). Round all other answers to nearest whole dollar.) Frozen Feed Baked Goods Fresh Produce $ 0 $ 0 $ 0 Store support Total store supporto Operating income la Operating margin (losa %
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