Variable and Absorption Costing--Three Products Winslow int manufactures and sells these types of shoes. The income statements prepared under the absorption costing method for the three shoes are as follows: Winslow Ine. Product Income Statements-Absorption Costing For the Year Ended December 31, 20Y1 Cross Training Shoes Golf Shoes Running Shoes Revenues $370,700 $229,800 $195,300 Cost of goods sold (192,800) (112.600) (130,900) Gross profit $177,900 $117,200 $64,400 Seling and administrative expenses (153,000) (107,500) Operating income $24.900 $32,800 $(43,100) In addition, you have determined the following information with respect to allocated fixed cost Cross Golf Running Training Shoes Shoes Shoes Fixed costs Cost of goods sold $59,300 $29,900 $27,300 Seling and administrative expenses 44,500 27,600 27,300 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 The management of the company has deemed the profit performance of the running shoeline as unacceptable. As a result, it has decided to eliminate the running shoeline Management does not expect to be able to Increase sales in the other two ines. However, as a result of eliminating the running shoe time management expects the profits of the company to increase by $43,100. 2. Are management's decision and conclusions correct? Check My Workmore Check My Workomen temaning MY