Varsable and Abrorpticn Costino-Three Products. Winslow inc. manufactures and sells three tvpes of shoes. The income statements prepared under the absorption costing method for the three shoes are is follons: winslow Inc. Product Income Statements- Abserption Costing For the Year Ended December 31, 20Y1 In adstion, you have determined the following infocmation with respect to ofocated flxes costry: inventory mav be idocked: a. Ane rumagneats deosion and corduslons connect? The proffr be improved because the fived cooss used in reanctacturing and selling. nearins shot: a. Are management's decision and conclusions correct? Maragements decison and condistion are - The profit be improved because the fiked costs used in manufacturing and selling runpino shoes be avoided if the line is triminated. b. Presare a variable costing income statement for the three products. Enter a net loss as a negative number using a minus slon. Winslow tnc. C. Uhe the report in (b) to determine the profit ingact of eliminatiog the nunning sboe line, assuming no other changes. If the runind shes line were eliminated, then the contributien maruin of the product line would Find the fived costs be elimihated, Thus, the ordit of the ceenpanr would actually of the aroduct by prices. by: 4. Management should keap the line and attempt to imorove the profitability velume, or costs