Chapter 5 Practice Homework i Saved Help Save & Exit Submit Check my work Studemeir Paint & Floors (SPF) has experienced net operating 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 discontinues the Other Flooring Products line. The operating results from the most recent period are: Paint and Other Paint Flooring Sales Supplies Carpet Products Cost of goods sold $375, 500 $201,000 $152, 000 151, 000 128, 000 117, 00 nces SPF estimates that store support 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 Other Paint Flooring Activity (cost driver) Supplies Carpet Products Order processing (number of purchase orders) 360 157 120 Receiving (number of deliveries) 48 194 60 Customer support (hours required per sale) 0.60 4. 0 0.70 Harish estimates activity-cost rates for each activity as follows: Order processing $160 per purchase order Receiving 180 per delivery Customer support 20 per hour Required: 1. Prepare a product-line profitability report for SPF under the current costing system. 2. Prepare a product-line profitability report for SPF 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 SPF under the current costing system. (Loss amounts should be indicated by a minus sign. Round operating margin (loss) to 2 decimal places (i.e. 0.2134 should be entered as 21.34%).) Paint & Paint Carpet Other Flooring Supplies Products Operating income (loss) |% Operating margin (loss) % % Required 1 Required 2 &gt