Please do Requirements 1-3

The 2018 data that follow pertain to Rick's Radical Eyewear, a manufacturer of swimming goggles. (Rick's Radical Eyewear had no beginning Finished Goods Inventory in January 2018.) (Click the icon to view the data.) Read the requirements Requirement 1. Prepare both conventional (absorption costing) and contribution margin (variable costing) income statements for Rick's Radical Eyewear for the year ended December 31, 2018. (Round intermediary calculations to the nearest cent.) Begin by preparing Rick's Radical Eyewear's conventional (absorption costing) income statement for the year ended December 31, 2018 0 Rick's Radical Eyewear Income Statement (Absorption Costing) Year Ended December 31, 2018 Net Sales Revenue Cost of Goods Sold Gross Profit Requirements i Data Table 140,000 105,000 1. Prepare both conventional (absorption costing) and contribution margin (variable costing) income statements for Rick's Radical Eyewear for the year ended December 31, 2018 2. Which statement shows the higher operating income? Why? 3. Rick's Radical Eyewear's marketing vice president believes a new sales promotion that costs $275,000 would increase sales to 130,000 goggles. Show Should the company go ahead with the promotion? Give your reasoning. Operating Income Number of goggles produced Number of goggles sold Sales price per unit Variable manufacturing cost per unit Sales commission cost per unit Fixed manufacturing overhead Fixed selling and administrative costs 560,000 200,000 Print Done Print Done