Vanable and Absorpion Costing - Three Products Fieet-of-Foot Inc. manufactures and selis three types of shoes. The income statements prepared under the absorption cosking method for the three shoes are as follows: Fleet-of-Foot Inc. Product Income Statements - Abenentian rantia- Inese nwed costs are uned te support all three product lines and wil not change wah the eliminatson of any one product. In addeion, you have determined that the effects of inventery may be ignored The management of the company has deemed the profit performence of the rumhing shse line as unacceptable. As a result, it has decided to eliminate the running shoe Whe. Mahagement does not expect to be able to increase sales in the other two lines. Howevec, as a result of eliminaboy the running shoe the, management expects the profics of the company to increase by 347,600 3. Are management decision and condusions coriect? Management's decition and condusige are The profit sellivg running shets be aveided if the line is eliminatied be imprered because the fored costs used in martufacturing and b. Prepare a variable costing income stetement for the three peoducts. Enter a net lors as a negatve number using a minus sigh. Fieet-of-Foot Inc. Variable Costing Income Statements-Three Product Lines C. Use the report in (b) to oetemuns the profe impact of elminashg the runting ahoe line, assuming no other chandes. It the running shoes tine were eliminated, then the coctribitoon margin of the oroduct line would fliminated Thus, the profit of the company would actualiy. brofitabitity of the preduct by