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Variable and Absorption Costing-Three Products Fleet-of-Foot Inc. manufactures and sells three types of shoes. The income statements prepared under the absorption costing method for the three shoes are as follows: Revenues Cross Training Shoes Golf Shoes Running Shoes $330,200 $201,400 Cost of goods sold (171,700) (98,700) Gross profit $158,500 $102,700 Selling and administrative expenses (136,300) (73,900) Operating income $22,200 $28,800 In addition, you have determined the following information with respect to allocated fixed costs: Cross Training Shoes Golf Shoes Running Shoes Fleet-of-Foot Inc. Product Income Statements-Absorption Costing For the Year Ended December 31 Fixed costs: $26,200 24,200 $173,200 (116,000) $57,200 (95,500) $(38,300) $24,200 24,200 Cost of goods sold $52,800 Selling and administrative expenses 39,600 These fixed costs are used to support all three product lines and will not change with the elimination of any one product. In addition, you have determined 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

Variable and Absorption Costing-Three Products Fleet-of-Foot Inc: manufactures and sells three types of shoes. The income statements prepared under the absorption costing method for the three shoes are as follows: In addition, you have determined the following information with respect to allocated fixed costs: These fixed costs are used to support all three product lines and will not change with the elimination of any one product. In addition, you have determined 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 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

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