Supermart Food Stores $($SFS$)$ has experienced net operating losses in its frozen food products line in the last few periods. Order processing

Receiving

Shelf stocking

Customer support

$$96$

$122$

per purchase order

per delivery

$26\mathrm{.}00$ per hour

$0\mathrm{.}27$ per item

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Required $1$

Prepare a product$-$line profitability report for SFS 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 $21\mathrm{.}34\%).$ E$5-32(10$pt$)$

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Order processing

Receiving

Shelf stocking

Customer support $$96$

per purchase order

per delivery

$26\mathrm{.}00$

per hour

$0\mathrm{.}27$ per item

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Prepare a product$-$line profitability report for SFS 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$[[$Frozen Food,Baked Goods,Fresh Produce$],[,,,,,],[,,,,,],[$Store support:,,,,,$],[,,,,,],[,,,,,],[,,,,,],[,,,,,],[$Total store support cost,,,,,$],[$Operating income $($loss$),,,,,],[$Operating margin $($loss$),,,,,]]$

Management believes that the store can improve its profitability if SFS discontinues frozen foods. The operating results from the most

recent period are:

SFS estimates that store support expenses, in total, are approximately $13\%$ of revenues.

The controller says that not every sales dollar requires or uses the same amount of store support activities. A preliminary analysis

reveals store support activities for these three product lines are:

The controller estimates activity$-$cost rates for each activity as follows:

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