Winslow Inc. Variable Costing Income Statements-Three Product Lines For the Year Ended December 31, 20Y1 Cross Training Shoes Golf Shoes Running Shoes Revenues 324,400 188,200 $ 161,900 Variable cost of goods sold 116,800 67,700 85,800 Manufacturing margin $ 207,600 120,500 $ 76,100 Variable selling and administrative expenses 95,000 46,500 66,500 Contribution margin 112,600 74,000 $ 9,600 > Fixed costs: Fixed manufacturing costs 51,900 24,500 $ 22,700 Fixed selling and administrative expenses 38,900 22,600 22,700 Total fixed costs 90,800 47,100 45,400 Operating income (loss) 21,800 26,900 -35,800 c. Use the report in (b) to determine the profit impact of eliminating the running shoe line, assuming no other changes. the running shoes line were eliminated, then the contribution margin of the product line would be eliminated and the fixed costs would not be eliminated. Thus, the pront of the company would actually decline by 5,100 X. Management should keep the line and attempt to improve the profitability of the product by increasing prices, Increasing volume, or reducing costs