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Supermart Food Stores (SFS) has experienced net operating losses in its...

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Accounting

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:
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:
The controller estimates activity-cost rates for each activity as follows:
Required:
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
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%).)
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