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 mos recent period are: Frozen Foods Sales Cost of goods sold $ 120,000 105,000 Baked Goods Fresh Produce $ 91,000 $ 158,175 67,000 110,000 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 Baked Fresh Foods Goods 10 12 45 55 Produce 100 120 2 30,000 0.5 40,000 4 86,000 The controller estimates activity-cost rates for each activity as follows: Order processing $ 80 per purchase order Receiving Shelf-stocking Customer support Required: 110 per delivery 15.25 per hour 0.21 per item 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.