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Supermart Food Stores (SFS) has experienced net operating losses in its frozen food products line last few periods. Management believes that the store can improve its profitability if SFS discontinue foods. The operating results from the most recent period are: Food Baked Goods Fresh Produce $205,000 $300,000$ 352,000 270,000 Sales Cost of goods sold 189,000 243,000 SFS estimates that store support expenses, in total, are approximately 13% of revenues. activities. A preliminary analysis reveals store support activities for these three product lines are: Activity (cost driver) The controller says that not every sales dollar requires or uses the same amount of store support Frozen FoodBaked GoodsFresh Produc 106 220 Order processing (number of purchase orders) Receiving (number of deliveries) Shelf-stocking (number of hours per Customer support (total units sold) 54 67 0.1 39,000 15 21,000 78,000 The controller estimates activity-cost rates for each activity as follows: Order processing Receiving Shelf-stocking Customer support 107 per purchase order 114 per delivery S 20.00 per hour 0.22 per item 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%).) Frozen Food $ 205,000 189,000 Baked Goods Fresh Produce Sales S 300,000 $352,000 Cost of goods sold 243,000 270,000

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