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: Baked Fresh Frozen Foods Goods Produce $91,000 67,000 $158,175 110,000 Sales $120,000 Cost of goods sold 105,000 SFS estimates that store support expenses, in total, are approximately 20% of revenues. The controller says that not every sales dollar requires or uses the same amount of store support activities. A preliminary analysis reveals store support activities for these three product lines are: Baked Fresh Activity (cost driver) Order processing (number of purchase orders) Frozen Foods Goods Produce 10 100 45 Receiving (number of deliveries) Shelf-stocking (number of hours per 12 120 55 delivery) 0.5 4 40,000 Customer support (total units sold) 30,000 86,000 The controller estimates activity-cost rates for each activity as follows: Order processing Receiving Shelf-stocking Customer support 80 per purchase order 110 per delivery 15.25 per hour 0.21 per item 1. Prepare a product-line profitability report for SFS under the current costing system. 2. Prepare a product-line profitability report for SFS using the ABC information the controller provides. X Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a product-line profitability report for SFS under the current costing system. (Loss amounts should be indicated by a minus sign. Round operating margin (loss) to 2 decimal places (i.e. .2134 should be entered as 21.34%).) Frozen Food Baked Goods Fresh Produce 2$ 91,000 Sales 120,000 158,175 67,000 Cost of goods sold 105,000 110,000 Gross margin 2$ $ 15,000 24,000 48,175 Store support 24,000 18,200 31,635 $ 2$ (9,000) 5,800 16,540 Operating income (loss) Operating margin (loss) 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. * Answer is not complete. 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 (i.e. .2134 should be entered as 21.34%). Round your other answers to nearest whole dollar.) Frozen Food Baked Goods Fresh Produce 120,000 V 91,000 Sales 158,175 67,000 O 110,000 O 105,000 Cost of goods sold Gross margin 48,175 15,000 24,000 Store support: 800 V 3,600 O Order processing $ 8,000 1,320 O 6,050 O 13,200 O Receiving Shelf-stocking 8,400 O 6,300 O Customer support 18,060 Shelf-stocking Total store support cost 8,420 18,050 39,260 Operating income (loss) % Operating margin (loss)