Score: 0 of 1 pt 1 of 4 (0 complete) HW Score: 0%, 0 of 4 pts E3-40A (similar to) Question Help O The annual data that follow pertain to Rick's Radical Eyewear, a manufacturer of swimming goggles. (Rick's Radical Eyewear had no beginning inventories.) (Click the icon to vlew the data.) Requirements 1. Prepare both conventional (absorption costing) and contribution margin (variable costing) income statements for Rick's Radical Eyewear for the year. 2. Which statement shows the higher operating income? Why? Reconcile the difference between the two statements. 3. Rick's Radical Eyewear's marketing vice-president believes a new sales promotion that costs $165,000 would increase sales to 205,000 goggles. Should the company go ahead with the promotion? Give your reason. Requirement Prepare both conventional (absorption costing) and contribution margin (variable costing) Income statements for Rick's Radical Eyewear for the year. Begin with the conventional (absorption costing) income statement. (For entries with a zero balance, make sure to enter "O" in the appropriate cell.) Rick's Radical Eyewear Conventional (Absorption Costing) Income Statement i Data Table For the Year Ended December 31 43 20 Sale price $ Variable manufacturing expenso per unit Sales commission expense per unit ..., Fixed manufacturing overhead Fixed operating expenses Number of goggles produced Number of goggles sold 5 1,640,000 290,000 205,000 185,000 Operating income Print Done Choose from any list or enter any number in the input fields and then click Check Answer. ? 6 parts remaining Clear All Check