3. The annual data that follow pertain to Sea Shades, a manufacturer of swimming goggles. (Sea Shades had no beginning inventories.) 1 (Click the icon to view the data.) Requirements 1. Prepare both conventional (absorption costing) and contribution margin (variable costing) income statements for Sea Shades for the year. 2. Which statement shows the higher operating income? Why? Reconcile the difference between the two statements. 3. Sea Down There's marketing vice-president believes a new sales promotion that costs $155,000 would increase sales to 210,000 goggles. Should the company go ahead with the promotion? Give your reason. Requirement 1. Prepare both conventional (absorption costing) and contribution margin (variable costing) income statements for Sea Shades for the year. Begin with the conventional (absorption costing) income statement. (For entries with a zero balance, make sure to enter "0" in the appropriate cell.) Sea Shades Conventional (Absorption Costing) Income Statement For the Year Ended December 31 (1) Sales revenue 339950 (2) Less: Cost of goods sold: (3) Cost of goods manufactured 24566 (4) Operating expenses 50505949 (5) Cost of goods available for sale 55955 (6) Ending finished goods inventory 55995 (7) Cost of goods sold 669958 (8) Gross profit (9) Operating expenses Operating income 585959 558696 5999