Furst, Inc. believed it could increase the companys 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, Sharpie pens, Elmers 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 are in thousands, unit amounts are not. Assume that Furst decides to eliminate one shampoo product-line, Luster, for one of its segments that currently produces three products. As a result, the following are expected to occur:

1. (1) The number of units sold for the segment is expected to drop by only 130,000 because of the elimination of Luster, since most customers are expected to purchase a Anagen or Catagen product instead. The shift 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 $33,000.

   (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 $345,000 and can be sold for only $65,000.

   (6) Facility-level costs will continue to be allocated between the product lines based on the number of units produced.

Product-Line Earnings Statements
(Dollar amounts are in thousands)
Annual Costs of Operating Each Product Line	Anagen				Catagen				Luster					Total
Sales in units		400,000				400,000				200,000				1,000,000
Sales in dollars	$	800,000			$	800,000			$	400,000			$	2,000,000
Unit-level costs:
Cost of production		76,000				76,000				41,100				193,100
Sales commissions		10,400				10,400				5,300				26,100
Shipping and handling		18,000				16,000				8,000				42,000
Miscellaneous		6,000				4,000				2,000				12,000
Total unit-level costs		110,400				106,400				56,400				273,200
Product-level costs:
Supervisors' salaries		8,000				6,000				2,000				16,000
Facility-level costs:
Rent		89,000				89,000				44,000				222,000
Utilities		100,000				100,000				50,000				250,000
Depreciation on equipment		356,000				356,000				178,000				890,000
Allocated company-wide expenses		20,000				20,000				10,000				50,000
Total facility-level costs		565,000				565,000				282,000				1,412,000
Total product cost		683,400				677,400				340,400				1,701,200
Profit on products	$	116,600			$	122,600			$	59,600			$	298,800

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.)

Revised Product-line Earnings Statements
Annual Costs of Operating Each Product Line	Anagen	Catagen	Totals
Sales in units			0
Sales in dollars			$0
Unit-level costs:
			0
			0
			0
			0
			0
Total unit-level costs			0
Product-level costs:
			0
			0
Facility-level costs:
Rent			0
			0
			0
			0
			$0
Total facility-level costs			0
Total product cost			0
Profit on products			0
Sale of Luster equipment
Segment earnings			$0