Studemeir Paint & Floors $($SPF$)$ is a retail store specializing in home improvement. The store has experienced net operating losses in its Order processing

Receiving

Customer support

$$153$ per purchase order

$191$ per delivery

$33$ per hour

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.

Note: Loss amounts should be indicated by a minus sign. Round operating margin $($loss$)$ to $2$ decimal places $($i$.$e$.0\mathrm{.}2134$

should be entered as $21\mathrm{.}34\%).1$

Required $1$

Required $2$

$10$

points

$\begin{array}{cc}\text{e}\text{B}\text{o}\text{o}\text{k}& \text{H}\text{i}\text{n}\text{t}\\ \text{P}\text{r}\text{i}\text{n}\text{t}& \text{R}\text{e}\text{f}\text{e}\text{r}\text{e}\text{n}\text{c}\text{e}\text{s}\end{array}$

Prepare a product$-$line profitability report for SPF using the ABC information the controller provides.

Note: Loss amounts should be indicated by a minus sign. Round operating margin $($loss$)$ to $2$ decimal places $($i$.$e$.0\mathrm{.}2134$ should be entered as $21\mathrm{.}34\%).$ Round all other answers to nearest whole dollar.

$\backslash$table$[[,\backslash$table$[[$Paint & Paint$],[$Supplies$]],$Carpet,$\backslash$table$[[$Other Flooring$],[$Products$]]],[,,,,,],[,,,,,],[,,,,,],[$Store support:,,,,,$],[,,,,,],[,,,,,],[,,,,,],[$Total store support,,,,,$],[$Operating income $($loss$),,\%,,,],[$Operating margin $($loss$),,,,,]]$

Other Flooring Products line during the last few periods. SPF$\text{'}$s management team thinks that the store will improve its profitability if it

stops carrying the Other Flooring Products line. The operating results from the most recent period are:

SPF estimates that store operating expenses are approximately $24\%$ of revenues.

Harish Rana, SPF$\text{'}$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:

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

Order processing $$153$ per purchase order

Receiving $191$ per delivery

Customer support $33$ per hour