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 $391,000 $222,900 $191,700 Cost of goods sold (203,300) (109,200) (128,400) Gross profit $187,700 $113,700 $63,300 Selling and administrative expenses (161,400) (81,900) (105,700) Operating income $26,300 $31,800 $(42,400)