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: Sales Cost of goods sold Paint and Paint Supplies: $376,100 Other Flooring 141,000 Carpet $ 234,000 154,000 Products $182,000 145,000 SPF estimates that store operating expenses are approximately 23% 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 orders) Receiving (number of deliveries). Paint and Paint Supplies 353 45 0.30 Customer support (hours required per sale) Harish estimates activity-cost rates for each activity as follows: Order processing Receiving Customer support $ 165 per purchase order 200 per delivery 20 per hour Carpet Other Flooring Products 112 200 140 47 9.0 0.60 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. 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. (Loss amounts should be indicated by a minus sign. Round operating margin (loss) to 2 decimal places (i.e. 0.2134 should be entered as 21.34%).) Paint & Paint Supplies Carpet Other Flooring Products $ 0 $ 0 $ Operating income (loss) Operating margin (loss) % % < Bequired 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a product-line profitability report for SPF using the ABC information the controller provides. (Loss amounts should be Indicated by a minus sign. Round operating margin (loss) to 2 decimal places (i.e. 0.2134 should be entered as 21.34%). Round all other answers to nearest whole dollar.) Paint & Paint Supplies Other Flooring Carpet Products $ 0 $ 0 $ 0 Store support Total store support 0 0 0 Operating income (loss) Operating margin (loss) % < Required 1 % Required 2 %