Decision to Discontinue a Product On the basis of the following data, the general manager of Hawkeye Shoes Inc, decided to discontinue Chlidren's Shoes because it reduced operating income by 530,000 Hawkeye Shoes Inc. Product-Line Income Statement For the Year Ended November 30, 2018 Children's Shoes Men's Shoes Women's Shoes $280,000 $300,000 $500,000 Total $1,080,000 Sales Costs of goods sold Variable costs Fixed costs $135,000) (45,000) (100,000) $100,000 $(150,000) (60,000) ${210,000) 590,000 ${220,000) (120,000) 5(340,000) ${505,000) (225,000) $(730,000) 5350,000 $160.000 Total cost of goods sold Great profit Selling and administrative expenses Variable selling and admin. expenses Fored selling and admin expenses Total selling and admin. expenses Operating income (los) $(45,000) $(95,000) (25.000) $(100,000) (30,000) $(130,000) $(30,000) (20,000) $(65.000) $25,000 5(240,000) (75,000) $(315,000) $35,000 $(120,000) $40,000 a. Preparediterential analyals to determine the flow in the general manager's decision 1 an amount is zero, entero*. 17 required, use a minus sign to Indicate a loss. Differential Analysis Continue (At. 1) or Discontinue (Alt. 2) Children's Shoes November 30 Continue Discontinue Differential Children's Shoes Children's Shoes Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costa Od My Work Che Wang Previous Next Differential Analysis Continue (Alt. 1) or Discontinue (Alt. 2) Children's Shoes November 30 Continue Discontinue Children's Shoes Children's Shoes (Alternative 1) (Alternative 2) Differential Effects (Alternative 2) Revenues Costs Variable cost of goods sold Variable selling and admin. expenses Fixed costs Profit (Loss) b. What is the fiow in the decision to discontinue Children's Shoes, if it is assumed fixed costs would not be materially affected by the discontinuance? If the children's Shoes are discontinued, the company's loss would by s