work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion Return to question losses in its Other Flooring Products line during the last few periods. SPF's management team thinks that the store will improve its profitability if it stops carrying the Other Flooring Products line. The operating results from the most recent perio are: Paint and Paint Supplies $ 278,600 154,000 Other Flooring Carpet Products $ 261,000 $191,000 183,000 150,000 Sales Cost of goods sold SPF estimates that store operating expenses are approximately 24% of revenues. Harish Rana, SPF's controller, states that while every sale has one purchase order, not every sales dollar requires or uses the same amount of store support activities. He conducts a preliminary investigation and his results and analysis are as follows Paint and Paint other Flooring Activity (cost driver) Supplies Carpet Products Order processing (number of purchase orders) 410 185 116 Receiving (number of deliveries) 37 155 60 Customer support (hours required per sale) 0.50 6.0 0.70 Harish estimates activity-cost rates for each activity as follows: Order processing Receiving Customer support $ 140 per purchase order 190 per delivery 20 per hour Required: Required 1 Required 2 LEDIGE Prepare a product-line profitability report for SPF using the ABC information the controller provides. (Loss a indicated by a minus sign. Round operating margin (loss) to 2 decimal places (.e. 0.2134 should be entere Round all other answers to nearest whole dollar.) Carpet $ $ Paint & Paint Supplies 278,600 154,000 124,600 261,000 Other Flooring Products $ 191,000 150,000 $ 41,000 183,000 78,000 $ $ Sales Cost of goods sold Gross margin Store support: Order processing Receiving Customer support $ $ 57,400 7,030 25,900 29,450 16,240 11,400 14 x 10 120 64,440 55,470 27,654 Total store support Operating income (loss) Operating margin (loss) % % %