Variabie and Kbyorption Costing -Three Products Winsiow inc. manufactures and seils three types of shoes. The income itatements prepared under the aheorgsent costing method for the three ahoes are as follows: Winslow Inc. Product Income Statements-Absorption Costing For the Year Finded December 31. 20v1 In addition, you hove determined the following information w th respect to allocated fixed cents: sales in the other two tnes. However, as a result of eliminating the running shoe lick, manbgement expects the profits of the munpani to iacreaie by s50,3go. a. Are management's decision and conchasions correct? Manapemienty decision and conclubion are The oroft be impreved because the fixed zostr ubed in maruficturng bsd seling fuging ahoes elimirated. b. Prepare a variable costing incume atatement for the three producti, Enter a net lost as a negathe cumber vilno a mitus she. resitinis inek thy war Wh the ruthing shots lint were elirtinated, then the cortribution makgin of the product liae would If by s Manegement wheuld kees the int and ariemot to inprove the prafeabatey ol the broduct by