Supermart Food Stores $($SFS$)$ has experienced net operating losses in its frozen food products line in the last few periods. Management believes that the store can improve its profitability if SFS discontinues frozen foods. The operating results from the most recent period are:

Sales: Frozen Food $$267,000$ Baked Goods $$438,000$ Fresh Produce $$473,000$

Cost of Goods Sold: Frozen Food $$249,000$ Baked Goods $$354,000$ Fresh Produce $$365,000$

SFS estimates that store support expenses, in total, are approximately $14\%$ 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:

Activity $($cost driver$)$

Order processing $($number of purchase orders$)$ Frozen Foods $10$ Baked Goods $57$ Fresh Produce $95$

Receiving $($number of deliveries$)$ Frozen Foods $14$ Baked Goods $73$ Fresh Produce $279$

Shelf stocking $($number of hours per delivery$)$ Frozen Foods $4$ Baked Goods $0\mathrm{.}1$ Fresh Produce $6$

Customer support $($total units sold$)$ Frozen Foods $33,000$ Baked Goods $38,000$ Fresh Produce $76,000$

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

Order processing $$96$ per purchase order

Receiving $$123$ per delivery

Shelf stocking $$29\mathrm{.}00$ per hour

Customer support $$0\mathrm{.}19$ per item

$1)$ 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 $21\mathrm{.}34\%).$

$2)$ 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. $\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline & $\backslash$multicolumn$\{3\}\{|$c$|\}\{$Frozen Food$\}$ & $\backslash$multicolumn$\{3\}\{|$c$|\}\{$Baked Goods$\}$ & $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Fresh Produce$\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{10\}\{|$c$|\}\{\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{10\}\{|$l$|\}\{\}\backslash \backslash$

$\backslash$hline & $\backslash$$ & $0$ & & $\backslash$$ & $0$ & & $\backslash$$ & $0$ & $\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{10\}\{|$l$|\}\{\}\backslash \backslash$

$\backslash$hline Operating income $($loss$)$ & & & & & & & & & $\backslash \backslash$

$\backslash$hline Operating margin $($loss$)$ & & & $\backslash (\backslash \%\backslash )$ & & & $\backslash \%$ & & & $\backslash \%\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|$l$|$l$|$l$|\}$

$\backslash$hline & $\backslash$multicolumn$\{2\}\{$c$|\}\{$ Frozen Food $\}$ & $\backslash$multicolumn$\{2\}\{$c$|\}\{$ Baked Goods $\}$ & $\backslash$multicolumn$\{2\}\{$c$|\}\{$ Fresh Produce $\}\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline Store support: & & & & & $\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline Total store support cost & & & & & $\backslash \backslash$

$\backslash$hline Operating income $($loss$)$ & & & & & $\backslash \backslash$

$\backslash$hline Operating margin $($loss$)$ & & & $\backslash (\backslash \%\backslash )$ & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$