please help me with part A,B,C

Variable and Absorption Costing --Three Products Winslow Inc. manufactures and sells three types of shoes. The income statements prepared under the absorption costing method for the three shoes are as follows: Winslow Inc. Product Income Statements-Absorption Costing For the Year Ended December 31, 2011 Cross Training Shoes Golf Shoes Running Shoes Revenues $5,800,000 $6,900,000 $4,200,000 Cost of goods sold (3,016,000) (3,381,000) (2,814,000) Gross profit $2,784,000 $3,519,000 $1,386,000 Selling and administrative expenses (2,436,000) (2,484,000) (2,142,000) Operating income $348,000 $1,035,000 $(756,000) In addition, you have determined the following information with respect to allocated foxed costs: Cross Training Shoes Golf Shoes Running Shoes Fixed costs: Cost of goods sold $928,000 $897,000 $798,000 Selling and administrative expenses 696,000 828,000 588,000 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 tine 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 running shoe line, management expects the profits of the company to increase by $756,000. a. Are management's decision and conclusions correct? Operating income $348,000 $1,035,000 $(750,000) In addition, you have determined the following information with respect to allocated fixed costs Cross Training Shoes Golf Shoes Running Shoes Fixed costs: Cost of goods sold $928,000 $897,000 $798,000 Selling and administrative expenses 696,000 828,000 588,000 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 tine. Management does not expect to be able to increase sales in the other two lines. However, as a result of eliminating the running shoe line, management expects the profits of the company to increase by $756,000. a. Are management's decision and conclusions correct? Management's decision and condusion a The profit be improved because the fixed costs used in manufacturing and selling running shoes be correct minated Incorrect b. Prepare a variable costing income statement for the three products. Enter a net loss as a negative number using a minus sign Winslow Inc. Variable Costing Income Statements-Three Product Lines For the Year Ended December 31, 2011 Cross Training Shoes Golf Shoes Running Shoes In addition, you have determined the following information with respect to allocated fixed costs: Cross Golf Training Running Shoes Shoes Shoes Fixed costs: Cost of goods sold $928,000 $897,000 $798,000 Selling and administrative expenses 696,000 828,000 588,000 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 running shoeline, management expects the profits of the company to increase by $756,000. a. Are management's decision and conclusions correct? Management's decision and conclusion are The pro be improved because the fixed costs used in manufacturing and selling running shoes be avoided if the line is eliminated will will not b. Prepare a variable costing income statement for the three products. Enter a net loss as a negative number using a minus sign Winslow Inc. Variable Costing Income Statements-Three Product Lines For the Year Ended December 31, 2011 Cross Training Shoes Golf Shoes Running Shoes Previous Next > In addition, you have determined the following information with respect to allocated fixed costs Cross Golf Running Training Shoes Shoes Shoes a Fixed costs Cost of goods sold $928,000 $897,000 $798,000 Selling and administrative expenses 696,000 828,000 588,000 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 lineas unacceptable. As a result, it has decided to eliminate the running shoe tine Management does not expect to be able to increase sales in the other two lines. However, as a result of eliminating the running shoe line, management expects the profits of the company to increase by $756,000 a. Are management's decision and conclusions correct? Management's decision and conclusion are The pront be improved because the fixed costs used in manufacturing and selling running shoe be avoided if the line is eliminated. will will not b. Prepare a come statement for the three products, Enter a net loss as a negative number using a minus sign Winslow Inc. Variable Costing Income Statements-Three Product Lines For the Year Ended December 31, 2011 Cross Training Shoes Golf Shoes Running Shoes loc a. Are management's decision and conclusions correct? Management's decision and conclusion are The profit running shoes be avoided if the line is eliminated. be improved because the fixed costs used in manufacturing and selling b. Prepare a variable costing Income statement for the three products, Enter a net loss as a negative number using a minus sign Winslow Inc. Variable Costing Income Statements-Three Product Lines For the Year Ended December 31, 20Y1 Cross Training Shoes Golf Shoes Running Shoes 0 0 Fixed costs: Q000 Total fixed costs Operating Income (loss) c. Use the report in (b) to determine the profit impact of eliminating the running shoeline, assuming no other changes If the running shoe line were eliminated, then the contribution margin of the product line would vand the foxed costs be eliminated. Thus, the profit of the company would actually by s Management should keep the line and attempt to improve the profitability of the product by prices, volume, or costs du pre managements Sion and conclusions correct? Management's decision and conclusion are The profit running shoes be avoided if the line is eliminated, be improved because the fixed costs used in manufacturing and selling b. Prepare a variabile conting income statement for the three products, Enter a netton as a negative number using a minus sign Winslow Inc. Variable Costing Income Statements-Three Product Lines For the Year Ended December 31, 2011 Cross Training Shoes Golf Shoes Running Shoes Contribution margin Manufacturing margin Revenues Variable cost of goods sold Variable selling expenses Fixed costs: Total fixed costs Operating income (loss) c. Use the report in (b) to determine the profit impact of eliminating the running shoe line, assuming no other changes. If the running shoe line were eliminated, then the contribution margin of the product line would and the fixed costs be eliminated. Thus, the profit of the company would actually by si Management should keep the line and attempt to improve the profitability of the product by prices, volume, or costs running shoes be avoided in the line is eliminated. b. Prepare a variable costing Income statement for the three products. Enter a net foss as a negative number using a minus sign Winslow Inc. Variable Costing Income Statements-Three Product Lines For the Year Ended December 31, 20Y1 Cross Training Shoes Golf Shoes Running Shoes Fixed costs: Nini ido 00 0000 Fixed contribution margin Fixed manufacturing costs Fixed sales Variable cost of goods manufactured Variable cost of goods sold c. Use the report in (b) to determine the profit impact of eliminating the running shoeline, assuming no other changes If the running shoe line were eliminated, then the contribution margin of the product line would and the fixed costs be eliminated. Thus, the profit of the company would actually Management should keep the line and attempt to improve the profitability of the product by prices, volume, or costs by s Fixed costs: DO QUID 0000000 Total fixed costs Operating income (loss) be c. Use the report in (b) to determine the profit impact of eliminating the running shoe line, assuming no other changes. If the running shoe line were eliminated, then the contribution margin of the product line would and the fixed costs eliminated. Thus, the profit of the company would actually by Management should keep the line and attempt to improve the profitability of the product by prices, volume, or costs