Requirement 1. Prepare both conventional (absorption costing) and contribution margin (variable costing) income statements for

Swimmer

for the year. Begin with the conventional (absorption costing) income statement.

Swimmer
Income Statement (Absorption Costing)
For the Year Ended December 31
Sales revenue
Less:	Cost of goods sold
Gross profit
Less:	Operating expenses
Operating income

Sales price. . . . . . . . . . . . . . . . . . . . . . . . . . . . .	$48
Variable manufacturing expense per unit. . .	$24
Sales commission expense per unit. . . . . . .	$5
Fixed manufacturing overhead. . . . . . . . . . . .	$1,935,000
Fixed operating expenses. . . . . . . . . . . . . . . .	$255,000
Number of goggles produced. . . . . . . . . . . . .	215,000
Number of goggles sold. . . . . . . . . . . . . . . . .	193,000