3. Carl on Duty Footwear manufactures and sells three products. The income statements prepared under the absorption costing method for the three products are as follows: Carl on Duty Footwear Product Income Statements - Absorption Costing For the Year Ended January 31 Financial Categories Non-Slip Shoes Steel Toe Boots Revenues $ 5,700,000 $ 6,900,000 Cost of goods sold $ 3,016,000 $ 3,392,000 Gross profit $ 2,684,000 $ 3,508,000 Selling and admin expenses $ 2,466,000 $ 2,484,000 Income from operations $ 218,000 $ 1,024,000 Work Boots $ 4,200,000.00 $ 2,814,000.00 $ 1,386,000 $ 2,041,000 $ (655,000) Fixed Costs Cost of goods sold Selling and admin expenses $ $ 928,000 696,000 $ $ 897,000 828,000 $ $ 798,000 588,000 These fixed costs are used to support all three product lines and will not change with the elimination of any one product. In addition, you have determined that the effects of inventory may be ignored. The management of the company has deemed the profit performance of the running shoe line as unacceptable. As a result, it has decided to eliminate the running shoe line. Management does not expect to be able to increase sales in the other two lines. However, as a result of eliminating the work boot line, management expects the profits of the company to increase by $655,000. a. Do you agree with management's decision and conclusions? Explain your answer. b. Prepare a variable costing income statement for the three products. C. Use the report in (a) to determine the profit impact of eliminating the work boot line assuming no other changes