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Vand Aption Costing-Three Products Winslow Inc. manutactures and sells three types of shoes. The income statements prepared under the bortion onged for the shoes Winstow

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Vand Aption Costing-Three Products Winslow Inc. manutactures and sells three types of shoes. The income statements prepared under the bortion onged for the shoes Winstow Inc Product Income Statements Absorption Costing For the Year Ended December 31, 2011 Cross Training Shoes Golf Shoes Running Shoes Revenues $503,500 $299,000 5248.200 Cost of goods sold (261,500 (14,100) (106,300 Gross profit $241,700 $14.900 85,000 Selling and administrative expenses 0207.000) (107,200) (136,800 Operating income 533,800 541,700 $(54,900) In addition, you have determined the following information with respectorated facts Cross Goll Running Training Shoes Shoes Shoes Fred casts Cost of goods sold $80,000 $38,000 $34.700 Selling and administrative expenses 60,400 35,000 34,700 These fed costs are used to support all three product lines and will not change with the nation of any anet product. In to you are deemed that there inventory may be ignored. The management of the company has deemed the profit performance of the running shoes unacceptable Aurelha deded to me than one Mantxoen het mee als in the theme Pri tem The management of the company has deemed the profit performance of the running shoeing as unacceptable. As a result, it has decided that the heir Management does not expect to be able to increase sales in the other two lines. However, as a result of eliminating the ring shonen expect the brother company to increase by 554.900 . Are management's decision and conclusions.correct? Management's decision and conclusione 1. The profiel running shoes be avoided the line is eliminated S beugroved because the foredragande b. Prepare a variable costing income statement for the three products Enter a nens a negative number wunga me Winslow Inc. Variable Costing Income Statements - Three Product Lines For the Year Ended December 31, 2011 Cross Training Shoes Golf Shoes Running Shoes Fixed COSES Dooi 3 1001 Total fixed costs b. Prepares variable couting income statement for the time to the event Winslow Inc Variable Costing Income Statements The Product lines For the Year Ended December 31, 2011 Cross Training Shoes Golf Shoes Running Shoes feed costs: DI) DODO 1000 (000 ibot Total food costs Operating income (los) Use the report in () to determine the profit impact of lating the shot in the changes If the running shoes in werelated, then the contribution of the product line w and that eliminated. Thus, the profit of the company would actually ty the product by vel

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