Winslow Inc, manufactures and sells three types of shoes. The income statements prepared under the absorpti Winslow Inc. Product Income Statements-Absorption Costing For the Year Ended December 31, 2011 Cross Training Shoes Golf Shoes Running Shoes Revenues $341,800 $205,100 $170,200 Cost of goods sold (177,700) (100,500) (114,000) Gross profit $164,100 $104,600 $56,200 Selling and administrative expenses (141,100) (75,300) (93,900) Operating income $23,000 $29,300 $(37,700) In addition, you have determined the following information with respect to allocated fixed costs: Cross Golf Running Training Shoes Shoes Shoes Fixed costs: Cost of goods sold $54,700 $26,700 $23,800 Selling and administrative expenses 41,000 24,600 23,800 These fixed costs are used to support all three product lines and will not change with the elimination of any one may be ignored. Winslow Inc. Variable Costing Income Statements-Three Product Lines For the Year Ended December 31, 2011 Cross Training Shoes Golf Shoes Running Shoes 341,800 $ 205,100 $ 170200 Fixed costs: Total fixed costs Operating income (loss) 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 fixed 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, volume, or costs