Target Corporation believed it could increase the companys 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, 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 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	494,400	494,400	252,600	1,241,400
Sales in dollars	$ 494,400	$ 494,400	$ 252,600	$ 1,241,400
Unit-level costs:
Cost of production	49,440	49,440	27,900	126,780
Sales commissions	6,180	6,180	2,460	14,820
Shipping and handling	11,124	9,888	4,860	25,872
Miscellaneous	3,708	2,472	2,400	8,580
Total unit-level costs	70,452	67,980	37,620	176,052
Product-level costs:
Supervisors' salaries	4,860	3,660	2,400	10,920
Facility-level costs:
Rent	48,600	48,600	24,000	121,200
Utilities	61,800	61,800	31,575	155,175
Depreciation on equipment	198,000	198,000	102,000	498,000
Allocated companywide expenses	12,360	12,360	6,315	31,035
Total facility-level costs	320,760	320,760	163,890	805,410
Total product cost	396,072	392,400	203,910	992,382
Profit on products	$ 98,328	$ 102,000	$ 48,690	$ 249,018

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.