Studemeir Paint & Floors $($SPF$)$ is a retail store specializing in home improvement. The store 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 stops carrying the Other Flooring Products line. The operating results from the most recent period are:

Paint and Paint Supplies Carpet Other Flooring Products

Sales $ $295,000$ $ $214,900$ $ $167,900$

Cost of goods sold $165,000150,000135,250$

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:

Activity $($cost driver$)$ Paint and Paint Supplies Carpet Other Flooring Products

Order processing $($number of purchase orders$)425150100$

Receiving $($number of deliveries$)5012060$

Customer support $($hours required per sale$)0\mathrm{.}508\mathrm{.}00\mathrm{.}75$

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

Order processing $ $140$ per purchase order

Receiving $180$ per delivery

Customer support $18$ 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.