Van Motion Coti-Three Products Winslow int manufactures and sets three types of shoes. The income sements 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 Ravenues 1415,100 $244,900 5203,300 Cost of goods sold (215,900) (120,000 (136,200) Goproti $199.200 $124.900 387,100 Setting and administrative expenses (171,300) (89,900 (112.100) Operating income $27,800 $35.000 45,000) In addition, you have determined the following information with respect to located feed costs Cross Golf Running Training Shoes Shoes Shoes Fixed costs Cost of goods sold 566,400 $31.500,00 Selling and administrative expenses 49.000 29.400 28.500 These fees costs are used to sort three products 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 properformance of the running shoelines unacceptable. As a result, it has decided to eliminate the running shoeline Management does not expect to be able Increase sales in the other two lines. However, as a result of eliminating the running short, management expects the profits of the company to Y5.000 a. Are management's decision and conclusions correct? Management's decision and conclusion are incorrect The profit will not be improved because the fined cons used in manufacturing and selling running shoes will not be avoided if the line b. Prepare a varie coming income statement for the three products, internet loss as a negative number using a minussion, Winslow Inc. Variable Costing Income Statements-Three Product Lines For the Year Ended December 31, 2011 Cross Training Shoes Golf Shoes Running Shoes Revenues Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin ddddd 0000 Fixed costs: Feed manufacturing costs Fixed wing and administrative expenses Total haedo Operating income to herungen werd, then the con margin of the producte bented and the could not ed. Thus, the profit of the company would a decline by Management should be the line and more probity of the product by increasing increasing volume of reducing