Variable and Absorption Costing-Three Products Winslow Inc. manufactures and sells three types of shoes. The income statements 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 Revenues Cost of goods sold Gross profit Selling and administrative expenses $342,000 $201,800 $167,500 (177,800) (96,900) (112,200) $164,200 $102,900 $55,300 (141,200) (74,100) (92,400) $23,000 $28,800 $(37,100) Operating income >In addition, you have determined the following information with respect to allocated fixed costs: Fixed costs: Cost of goods sold Selling and administrative expenses Cross Training Shoes Golf Running Shoes Shoes 41,000 $54,700 $26,200 $23,500 24,200 23,500 These fixed costs are used to support all three product lines and will not change with the elimination of any one product. In addition, you have determined that the effects of inventory. may be ignored.