I keep putting that number inside the box and it keeps saying that its wrong 1,386,000 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.Variable Costing Income Statements-Three Product LinesFor the Year Ended December 31, 20Y1Cross Training ShoesGolf ShoesRunning ShoesRevenues5,800,0006,900,000V4,200,000Variable cost of goods sold2,088,0002,484,000 V2,016,000Manufacturing margin4,416,000V2,184,000 V3,712,000Variable selling and administrative expenses1,740,0001,656,0001,554,000Contribution margin1,972,0002,760,000630,000Fixed costs:Fixed manufacturing costs928,000897,000798,000Fixed selling and administrative expenses696,000828,000588,000Total fixed costs1,624,0001,725,0001,386,000Operating income (loss)348,0001,035,000-756,000Feedbackc. Use the report in (b) to determine the profit impact of eliminating the running shoe line, assuming no other changes.If the running shoe line were eliminated, then the contribution margin of the product line would be eliminatedwould notand the fixed costsV be eliminated. Thus, the profit of the company would actually declinev by $ 1,386,00 x. Management should keepv volume, or reducingthe line and attempt to improve the profitability of the product by increasingV prices, increasingcosts. Variable and Absorption Costing-Three ProductsWinslow Inc. manufactures and sells three types of shoes. The income statements prepared under the absorption costing method for the three shoesare as follows:Winslow Inc.Product Income Statements-Absorption CostingFor the Year Ended December 31, 20Y1Cross Training Shoes Golf Shoes Running ShoesRevenues$5,800,000$6,900,000$4,200,000Cost of goods sold(3,016,000)(3,381,000)(2,814,000)Gross profit$2,784,000$3,519,000$1,386,000Selling and administrative expenses(2,436,000)(2,484,000)(2,142,000)Operating income$348,000$1,035,000$(756,000)In addition, you have determined the following information with respect to allocated fixed costs:CrossGolfRunningTrainingShoesShoesShoesFixed costs:Cost of goods sold$928,000 $897,000 $798,000Selling and administrative expenses696,000828,000588,000These fixed costs are used to support all three product lines and will not change with the elimination of any one product. In addition, you havedetermined that the effects of inventory may be ignored.The management of the company has deemed the profit performance of the running shoe line as unacceptable. As a result, it has decided to eliminatethe running shoe line. Management does not expect to be able to increase sales in the other two lines. However, as a result of eliminating the runningshoe line, management expects the profits of the company to increase by $756,000.a. Are management's decision and conclusions correct?Management's decision and conclusion are incorrect. The profit will notbe improved because the fixed costs used inmanufacturing and selling running shoes will notV be avoided if the line is eliminated.

solution given contribution margin of running shoes =$630000 total fixed cost of running shoes…

Answered: I keep putting that number inside the…

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I keep putting that number inside the box and it keeps saying that its wrong 1,386,000

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 58P: Cost of Goods Manufactured, Income Statement W. W. Phillips Company produced 4,000 leather recliners...

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Variable and Absorption Costing—Three Products Winslow Inc. manufactures and sells three types of shoes. The income statements prepared under the absorption costing method for the three shoes are as follows: Winslow Inc.Product Income Statements—Absorption CostingFor the Year Ended December 31, 20Y1 Cross Training Shoes Golf Shoes Running Shoes Revenues $388,200 $240,700 $204,600 Cost of goods sold (201,900) (117,900) (137,100) Gross profit $186,300 $122,800 $67,500 Selling and administrative expenses (160,200) (88,400) (112,700) Operating income $26,100 $34,400 $(45,200) In addition, you have determined the following information with respect to allocated fixed costs: Cross Training Shoes Golf Shoes Running Shoes Fixed costs: Cost of goods sold $62,100 $31,300 $28,600 Selling and administrative expenses 46,600 28,900 28,600 These fixed costs are used to support all three product lines and will not…
Variable and Absorption Costing—Three Products Winslow Inc. manufactures and sells three types of shoes. The income statements prepared under the absorption costing method for the three shoes are as follows: Winslow Inc.Product Income Statements—Absorption CostingFor the Year Ended December 31, 20Y1 Cross Training Shoes Golf Shoes Running Shoes Revenues $411,900 $238,900 $198,300 Cost of goods sold (214,200) (117,100) (132,900) Gross profit $197,700 $121,800 $65,400 Selling and administrative expenses (170,000) (87,700) (109,200) Operating income $27,700 $34,100 $(43,800) In addition, you have determined the following information with respect to allocated fixed costs: Cross Training Shoes Golf Shoes Running Shoes Fixed costs: Cost of goods sold $65,900 $31,100 $27,800 Selling and administrative expenses 49,400 28,700 27,800 These fixed costs are used to support all three product lines and will not…
Variable and Absorption Costing—Three Products Winslow Inc. manufactures and sells three types of shoes. The income statements prepared under the absorption costing method for the three shoes are as follows: Winslow Inc.Product Income Statements—Absorption CostingFor the Year Ended December 31, 20Y1 Cross Training Shoes Golf Shoes Running Shoes Revenues $5,800,000 $6,900,000 $4,200,000 Cost of goods sold (3,016,000) (3,381,000) (2,814,000) Gross profit $2,784,000 $3,519,000 $1,386,000 Selling and administrative expenses (2,436,000) (2,484,000) (2,142,000) Operating income $348,000 $1,035,000 $(756,000) In addition, you have determined the following information with respect to allocated fixed costs: Cross Training Shoes Golf Shoes Running Shoes Fixed costs: Cost of goods sold $928,000 $897,000 $798,000 Selling and administrative expenses 696,000 828,000 588,000 These fixed costs are used to support…
Variable and Absorption Costing—Three Products Winslow Inc. manufactures and sells three types of shoes. The income statements prepared under the absorption costing method for the three shoes are as follows: Winslow Inc.Product Income Statements—Absorption CostingFor the Year Ended December 31, 20Y1 Cross Training Shoes Golf Shoes Running Shoes Revenues $5,800,000 $6,900,000 $4,200,000 Cost of goods sold (3,016,000) (3,381,000) (2,814,000) Gross profit $2,784,000 $3,519,000 $1,386,000 Selling and administrative expenses (2,436,000) (2,484,000) (2,142,000) Operating income $348,000 $1,035,000 $(756,000) In addition, you have determined the following information with respect to allocated fixed costs: Cross Training Shoes Golf Shoes Running Shoes Fixed costs: Cost of goods sold $928,000 $897,000 $798,000 Selling and administrative expenses 696,000 828,000 588,000 These fixed costs are used to support…
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Variable and Absorption Costing-Three Products Winslow Inc. manufactures and sells three types of shoes. The income statements prepared under the absorption costing method for the three shoes are as follows: Winslow Inc. Product Income Statements-Absorption Costing For the Year Ended December 31, 20Y1 Cross Training Shoes Golf Shoes Running Shoes $5,800,000 $6,900,000 $4,200,000 Revenues Cost of goods sold (3,016,000) (3,381,000) (2,814,000) Gross profit $2,784,000 $3,519,000 $1,386,000 Selling and administrative expenses (2,436,000) (2,484,000) (2,142,000) $1,035,000 $(756,000) Operating income $348,000 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 $928,000 $897,000 $798,000 Selling and administrative expenses 828,000 696,000 588,000 These fixed costs are used to support all three product lines and will not change with the elimination of any one product. In…
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