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: Sales Cost of goods sold Paint and Paint Suppl ies 171, eaa Carpet $221, eaa , eaa Other Flooring Products , saa 140, 25a SPF estimates that store support expenses are approximately 21% 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: Activity (cost driver) Order processing (number of purchase Receiving (number of deliveries) Customer support (hours required per Paint and Paint Suppl ies 431 Other Flooring Products Carpet 114 orders) sale) Harish estimates activity-cost rates for each activity as follows: Order processing Receiving Customer support $145 184 29 per per per purchase order delivery hour