January $2018,$ Newell Brands, the company whose products include Tupperware, Sharpie 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 are in thousands, unit amounts are

not. Assume that a manufacturer of breakfast cereals decides to eliminate one of its products called Sugar$-$Bits from a segment that

currently produces three products. As a result, the following are expected to occur:

The number of units sold for the segment is expected to drop by only $43,000$ because of the elimination of Sugar$-$Bits, since

most customers are expected to purchase a Fiber$-$Treats or Carbo$-$Crunch product instead. The shift of sales from Sugar$-$Bits to

Fiber$-$Treats and Carbo$-$Crunch is expected to be evenly split. In other words, the sales of Fiber$-$Treats and Carbo$-$Crunch will

each increase by $130,000$ units.

Rent is paid for the entire production facility, and the space used by Sugar$-$Bits cannot be sublet.

Utilities costs are expected to be reduced by $$27,000.$

All of the supervisors for Sugar$-$Bits were terminated. No new supervisors will be hired for Fiber$-$Treats or Carbo$-$Crunch.

All of the equipment being used to produce Sugar$-$Bits will be sold at its current market value of $$36,500.$

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

Required

Prepare revised product$-$line earnings statements based on the elimination of Sugar$-$Bits. $($Hint$.$ It will be necessary to calculate some

per$-$unit data to accomplish this.$)$

Note: Enter your answers in thousands. Do not round intermediate calculations. Enter all amounts as positive values.

Required

Prepare revised product$-$line earnings statements based on the elimination of Sugar$-$Bits. $($Hint$.$ It will be necessary to calculate some

per$-$unit data to accomplish this.$)$

Note: Enter your answers in thousands. Do not round intermediate calculations. Enter all amounts as positive values.