oo beginning inventories in January $20$X$6.$

Required:

a$)$ Calculate the following for Rays

i$)$ The total cost per unit

ii$)$ The value of ending inventories using marginal costing

iii$)$ The value of ending inventories using total costing

b$)$ Prepare a variable costing $($contribution margin$)$ income statement for Rays for the

year ended December $31,20$ X$6.$

c$)$ Rays marketing vice president believes a new sales promotion that costs $$150,000$

would increase sales to $200,000$ goggles. Should the company go ahead with the

promotion? Give your reason.