The 2015 data that follow pertain to Toms Terrific Eyewear, a manufacturer of swimming goggles. (Toms Terrific Eyewear had no beginning Finished Goods Inventory in January 2014)

1. Prepare both conventional (absorption costing) and contribution margin (variable costing) income statements for Mike's Magnificant Eyewear for the year ended December 31, 2016 3. Mike's Magnificant Eyewear's marketing vice president believes a new sales promotion that costs $120,000 would increase sales to 205,000 goggles. Should the company go ahead with the promotion? Give your reasoning