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Winslow Inc: Product Income Statements - Absorption Costing For the Year Ended December 31,2011 In addition, you have determined the following information with respect to allocated fixed costs: 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 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 ellminating the running shoe line, management expects the profits of the company to increase by $756,000. a. Are management's decision and conclusions correct? Mansgement's decision and conclusion are] be improved because the fixed costs used in manufacturing and selling running shoes 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 should keep the line and attempt to improve the profitability of the product by prices, Management volume, or costs