Colose QUESTION 17 Cocol. is a manufacturer of hand-knit scarves. Production and sales information pertaining to CocoLa's current year is shown below: Units Produced Units Sold 11,500 10.000 595 Sales Price per Unit Direct Materials per Unit Direct Labor per Unit Variable Manufacturing Overhead per Unit 12 40 Fixed ManufacturOverhead Costs Fixed Selling and Anistrative Costs $103,500 10 56,200 Sales Commission Per Unit 5 14 points) Part income statement using the contribution margin variable costing) method beginning inventories Assume Cocou had no b. 14 points) Prepare Cocolau's income statement using the traditional (absorption costing) method Assume Cocolu had no beginning Inventories 14 points) Computir ending finished goods inventory in dollars for both the absorption costing method and the variable costing method. Briefly explain how the differences in ending inventory relate to the observed differences in operating income. c. d. 14 points) CocoLu's CEO, Kay Quinn, believes that, if the company engages in a sales promotion that would increase fixed costs by $50.000 it could increase its annual sales to 12,000 units. Assuming that the CEO's projections are correct and all other relevant information remains unchanged. should CocoLu undertake the sales promotion? Please provide an explanation for your answer. TTT Arla 3 (121) T.: Macie