Variable and Absorption Costing-Three Products Winslow Ine manufactures and sells three types of shoes. The income statements prepared under the absorption costing method for the three shoes are as follows: In addition, you have determined the following information with respect to allocated fixed costs: These fored costs are used to support all three product lines and will not change wh the elimination of any one product, In adaition, vou have determined that the effects of inventory may be ignored. The manogement of the company has deemed the profit performance of the running shoe line as unacceptable. As a result, it has decided to eliminate the b. Prepare a variable costing income statement for the three products. Enter a net loss as a negative number using a minus sign. Winslow Inc. c. Use the report in (b) to determine the profit impact of eliminating the running shoe line, assuming no other changes. If the running shoes line were eliminated, then the contribution margin of the product line would and the fxed costs be eliminated. Thus, the profit of the company would actually by s - Management should keep the line and attempt to improve the profitability of the product by prices, yolume, or costs