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 Paint Other Flooring Sales Cost of goods sold Supplies Carpet Products $334,700 $231,000 $140,000 150,000 123,000 106,000 SPF estimates that store support expenses are approximately 27% 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 Activity (cost driver) Order processing (number of purchase orders) Receiving (number of deliveries) Customer support (hours required per sale) Supplies Carpet Products 169 181 5.0 Paint 449 0.50 Flooring 107 0.70 31 65 Harish estimates activity-cost rates for each activity as follows: $153 per purchase order Order processing Receiving Customer support 180 per delivery 26 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