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Fleet-of-Foot Inc. Product Income Statements-Absorption Costing For the Year Fnded December 31 In...

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Accounting

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Fleet-of-Foot Inc. Product Income Statements-Absorption Costing For the Year Fnded December 31 In addition, you have determined the following information with respect to allocated fixed costs: ignored. a. Are management's decision and conclusions correct? Management's decision and conclusion are . The profit be improved because the fixed costs used in manufacturing and selling running shoes be avoided if the line is eliminated. b. Prepare a variable costing income statement for the three products. Enter a net loss as a negative number using a minus sign. Fleet-of-Foot Inc. Variable Costing Income Statements-Three Product Lines For the Year Ended December 31 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 $ Management should keep the line and attempt to improve the profitability of the product by prices, volume, or costs

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