Target Corporation believed it could increase the company$$s profits by closing its stores in Canada. Other companies have also tried to improve their financial performance by downsizing. In November $2017,$ General Electric announced it would begin a downsizing operation that would result in their exiting businesses that were using over $$20$ billion in assets in the next one to two years. In January $2018,$ Newell Brands, the company whose products include Tupperware, Sharpie pens, 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 $40,600$ 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 $106,000$ 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 $$24,600.$

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 $$35,300.$

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 Fiber$-$Treats Carbo$-$Crunch Sugar$-$Bits Total

Sales in units $494,400494,400247,2001,236,000$

Sales in dollars $ $494,400$ $ $494,400$ $ $247,200$ $ $1,236,000$

Unit$-$level costs:

Cost of production $49,44049,44027,300126,180$

Sales commissions $6,1806,1802,46014,820$

Shipping and handling $11,1249,8884,86025,872$

Miscellaneous $3,7082,4722,4008,580$

Total unit$-$level costs $70,45267,98037,020175,452$

Product$-$level costs:

Supervisors' salaries $4,8603,6602,40010,920$

Facility$-$level costs:

Rent $48,60048,60024,000121,200$

Utilities $61,80061,80030,900154,500$

Depreciation on equipment $198,000198,00099,000495,000$

Allocated companywide expenses $12,36012,3606,18030,900$

Total facility$-$level costs $320,760320,760160,080801,600$

Total product cost $396,072392,400199,500987,972$

Profit on products $ $98,328$ $ $102,000$ $ $47,700$ $ $248,028$

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.