Please fix any red xs and complete variable costing income statement proposal 3. Thanks in advance!

Valdespin Company manufactures shroe sizes of camping tents-small(8), medium (M), and large (L.). The inoome statement has consistendy indicated a net loss for the M size, and management is considering throe proposals: (3) contnue Size M. (2) discontinue Size M and reduce total output acoordingly, or (3) discontinue Sze M and oonduct an advertising campaign to expand the sales of Size S so that the entire pliant capacity can continue to be used I"l Proposal 2 is selected and Size M is discontinued and production cunaled, tne annual fxed production osts and fixed operating expenses could be reduced by $46,080 and $32,240, is selected, esane paned that an ad inal annual expenditure of S 4,560forthe rertal of aditional warehouse space wold you an ad tonal 13% in Size S sales volume. t is also assumed that the increased production of Size S would ublize the plant facilities released by the discontinuance of Size M The sales and coets have been relatively stable over the past few years, and hey are expected to remain so for the foreseeable future. The income statement for the past year ended June 30, 20Y9, is as follows Sze 5 Soe M Total Sales 668,000.00 $737,300.00 $956160.00 $2,361,460.00 Cost of goods sold 300,000.00 $357,120.00 $431760.00 $1,094,880.00 385,93000 374,88000$495,370.00 $610,560.00 $1,480,810.00 8E0,650.00 4Variable costs Foxed costs 74,880.00 138,250.00 172,800.00 Total cost of goods sold y Gross profit 193000 $345,60000 $860,650 Operating expenses