both conventio Data table Swim Clearly ment (Absorpt ear Ended Dec old ses Sales price...... Variable manufacturing expense per unit Sales commission expense per unit........ Fixed manufacturing overhead... Fixed operating expenses.... Number of goggles produced.. Number of goggles sold Print Done - X s for Swim Clearly for the year. Begin with the e 46 $ 15 6 $ 2,820,000 $ 240,000 235,000 221,000 repare both a Swin Statement the Year E ods sold Expenses Requirements SEXER 1. Prepare both conventional (absorption costing) and contribution margin (variable costing) income statements for Swim Clearly for the year. 2. Which statement shows the higher operating income? Why? 3. The company marketing vice president believes a new sales promotion that costs $150,000 would increase sales to 235,000 goggles. Should the company go ahead with the promotion? Give your reason. Print Done - X Clearly for the year. Be BEE (Click the icon to view the data.) Read the requirement Requirement 1. Prepare both conventional (absorption costing) and contribution margin (variable costing) income statements for Swim Clearly for the year. Begin with the conventional (absorption costing) income statement. Swim Clearly Income Statement (Absorption Costing) For the Year Ended December 31 Sales revenue Less: Cost of goods sold Gross profit Less: Operating expenses Operating income $ 10,166,000 6,630,000 3,536,000