75 Furst, Inc. believed it could increase the company's profits by eliminating some product lines. Other companies have also tried to Improve their financial performance by downsizing in November 2017. General Electric announced it would begin a downsizing operation that would result in their exiting businesses using over $20 billion in assets in the next one to two years. In January 2018. Newell Brands, the company whose products include Tupperware, Sharple pens. Elmer's Glue and Rawlings sports products, announced it would be reducing its product offerings to the extent that it would close half of its facilities and reduce its revenues by 20 percent Consider the additional information presented as follows, which is hypothetical. All dollar amounts we in thousandsunt amounts are not. Assume that Furst decides to eliminate one shampoo product line, Lustet, for one of its segments that currently produces three products. As a result, the following are expected to occur (1) The number of units sold for the segment is expected to drop by only 150,000 because of the elimination of Lustet since most customers are expected to purchase a Anagen or Catagen product instead. The shin of sales from Luster to Anagen and Catagen is expected to be evenly split. In other words, the sales of Anagen and Catagen will each increase by 35,000 units (2) Rent is paid for the entire production facility, and the space used by Luster cannot be sublet (3) Utilities costs are expected to be reduced by $40,000 (4) All of the supervisors for Luster were all terminated. No new supervisors will be hired for Anagen or Catagen. (5) Half of the equipment being used to produce Luster is also used to produce the other two products and its depreciation cost must be absorbed by them. The remaining equipment has a remaining a book value of $365,000 and can be sold for only $85.000 (6) Facility-level costs will continue to be allocated between the product lines based on the number of units produced, Reference Catan 440.000 $830,000 Total 220,00 1.100.000 $440,000 $2,200,000 Product-Line Earnings Statements (Dollar amounts are in thousands) Annual Costs of Operating Each Product Line Anapen Sales in its 44,00 Sales in dollars $880,00 Unit-level costs Cost of production 83,600 Sales commissions 11.40 Shipping and handling 19.00 Miscellaneous 6, Total unit. 11 M 83,600 11,440 17,600 4.400 117 45,100 5,700 3,000 2.400 42 212,300 28.50 46,200 Catagen 440,000 $880,000 Luster 220,000 $440,000 Total 1,100,000 $2,200,000 83,600 11,440 17,600 4,400 117, 040 45,100 5,700 8,800 2,400 62,000 212,300 28,580 46,200 13,400 300,480 6,600 Product Line Earnings Statements (Dollar amounts are in thousands) Annual Costs of Operating Each Product Line Anagen Sales in units 440,000 Sales in dollars $880,000 Unit-level costs: Cost of production 83,600 Sales commissions 11,440 Shipping and handling 19,800 Miscellaneous Total unit-level costs 121,440 Product-level costs: Supervisors' salaries 8,880 Facility-level costs: Rent 97,000 Utilities 110,000 Depreciation on equipment 392,000 Allocated company-wide expenses 22,000 Total facility-level costs 621,000 Total product cost 751,240 Profit on products $128,760 6,800 2,209 17,800 97,000 110,000 392,000 22,000 621,000 744,840 $135,160 48,000 55,000 194,000 11,000 308,000 372,200 $ 67,800 242,000 275,000 978,000 55.000 1,550,000 1,868, 280 $ 331,720 Required Prepare revised product-line earnings statements based on the elimination of Luster. (Hint It will be necessary to calculate some per unit data to accomplish this.) (Enter your answers in thousands. Do not round intermediate calculations. Enter all amounts as positive values.)