how do I do requirement 3?

%E6-40A (similar to) The annual data that follows pertain to Googles 4 U, a manufacturer of swimming google (the company had no beginning inventory Click the icon to view the data) Requirements 1. Prepare both conventional (absorption costing) and contribution margin (variable costing) income statements for Goggles 4U 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 $170,000 would increase sales to 220.000 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 Goggles 4 U for the year. Begin with the conventional (absorption costing) income statement Goggles 4 U Income Statement (Absorption Costing) For the Year Ended December 31 Data Table Sales revenue $ 9.565,000 Less: Cost of goods sold 6.435.000 Sales pri ... Gross profit 3,120.000 Variable manufacturing expense peruit....5 Less Operating expenses 1.820.000 Sales co n expense por unt. $ Operating income $ 1,300 000 Fleed manuacturing overhad............5 1.900.000 Now let's prepare the contribution margin (variable cosing income statement for Goggles 4 U for the you Fixed operating exposes Nurnber of goggles toond... 220,000 Goggles 40 Number of goggles sold.. 1950 Enter any number in the edit fields and then click Check Answer Print Done Check Answer I remaining %E6-40A (similar to) B on Help The annual that follows portanto Goggles 4U a montaturer of swimming goggles the company had no beginning inventory BBC the icon to view the data) Data Tube Requirements 1. Prepare bon conventional prin conting and contribution margin (Variable costing income statements for Goggles 4 U for the year 2. Which statement shows the higher operating income? Why? 3. The company marketing vice president beleves a new sales promotion that costs $170.000 would increase sales to 220.000 google. Should theo Goggies 40 Contribution Margin (Variable Costing Income Statement For the Year Ended December 31 Sales revenue 0 .000 Loss: Variable expenses Variable rating expenses 1,560,000 Variable cost of goods sold 460 000 Conton margin 3.315.000 Fedexpenses Fixed manufacturing overhead 1.980.000 200 000 Federing excenes 1075 000 Operating income 24 Serie Variable manc ing expense per unit... Sales com o expense perit Fhed manufacturing overhead Find opening expenses Number of goggles Number of C od 1.500.000 200.000 220.000 195.000 Arm. Done Entrany number in the red and then click Check Answer part Clear Al Check Answer HW Cure: 0.027, 19.36 %E6-40A (similar to) 0 Data Table The annual data that follows pertain to Goggles 4 U, a manufacturer of swimming goggles (the company had no beginning inventory (Click the loon to view the data) Requirements 1. Prepare both conventional (absorption costing) and contribution margin (variable costing) income statements for Goggles 4 U 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 $170,000 would increase sales to 220.000 google. Should the company go ahe Sales prio Variable rotacturing expense por unt.....5 Sales com o expense parant....... 5 Fixed mandacturing overhad.................$ 1,98 Fixed operating expos ................. Number of goggles produced........ Number of googles sold. . Requirement 2. Which statement shows the higher operating income? Why? Absorption costing operating income is higher than variable cosing operating income. This is because absorption costing defers $ 225,000 of fund manufacturing overhead as an assetin ending inventory. In contrast, variable costing expenses all of the fixed manufacturing overhead during the year costs during the year, so variable costing operi income is $ 225,000 Variable costing expenses $ 225,000 more less than absorption costing income the year. Requirement. The company marketing vice president believes a new sales promotion that costs $170,000 would increase sales to 220,000 people. Should the company go ahead with the promotion Give your reason Use the contribution margin income statement format to evaluate the sales promotion Increase in contribution margin Increase in fixed expenses Increase in operating income Enter any number in the edit fields and then click Check Answer Check Answer Clear All