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 SuppliesCarpetOther Flooring ProductsSales$273,100$291,000$151,000Cost of goods sold161,000199,000119,000

SPF estimates that store support expenses are approximately 26% 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)Paint and Paint SuppliesCarpetOther Flooring ProductsOrder processing (number of purchase orders)410180114Receiving (number of deliveries)5015060Customer support (hours required per sale)0.809.00.60

Harish estimates activity-cost rates for each activity as follows:

Order processing$125per purchase orderReceiving175per deliveryCustomer support26per hour

Required:

1. product-line profitability report for SPF under the current costing system.

2. product-line profitability report for SPF using the ABC information the controller provides.