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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 can improve its profitability If SFS discontinues frozen foods. The operating results from the most recent period are: Sales Cost of goods sold Frozen Foods $ 264,000 247,000 Baked Goods $ 436,000 352,000 Fresh Produce $ 469,000 362,000 SFS estimates that store support expenses. In total, are approximately 13% 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 Frozen Baked Activity (cost driver) Foods Goods Order processing number of purchase orders) 10 60 Receiving number of deliveries) 9 70 Shell-stocking number of hours per delivery) 6 0.2 Customer support (total units sold) 34,800 38,000 The controller estimates activity.cost rates for each activity as follows: Fresh Produce 97 278 6 76,000 Order processing Receiving Shelf-stoclang Custose support 5.98 121 29.00 e.17 per purchase order per delivery per hour 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 SFS 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 under the current costing system. (Loss amounts should be indicated by a meus sign. Round operating margin (los) to 2 decimal places de 0.2134 should be entered as 21.34%).) Frozen Food Baked Goods Fresh Produce Operating income (0) Operating margin foss) 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 (1.e. 0.2134 should be entered as 21.34%). Round all other answers to nearest whole dollar.) Frozen Food Baked Goods Fresh Produce Store support Total store support cost Operating income foss) Operating margin (los)

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