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 Other $ 329,000 121,000 Carpet $225,000 153,000 Flooring: Products Sales Cost of goods sol $186,000 148,000 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). Paint and Paint Supplies 415 39 0.40 Order processing (number of purchase orders) Receiving (number of deliveries) Customer support (hours required per sale). Harish estimates activity cost rates for each activity as follows: Order processing Receiving Customer support Required: $ 140 per purchase order 174 per delivery 20 per hour Carpet 120 215 Other Flooring Products 130 66 7.0 0.50 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. 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 Sales Cost of goods sold Gross margin $ 0 $ 0 $ 0 Store support Operating income (loss) Operating margin (loss) % Required 1 Required 2 Prepare a product line profitability report for SPF using the ABC information the controller provides. (Loss amounts should be dicated 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.) Sales Paint & Paint Supplies Other Flooring Carpet Products Cost of goods sold Gross margin $ 0 $ 0 $ 0 Store support Customer support Order processing Receiving Total store support Operating income (loss) Operating margin (loss) 0 0 %