The 2018 data that follow pertain to Mike's Magnificent Eyewear, a manufacturer of swimming goggles. (Mike's Magnificent Eyewear had no beginning Finished Goods Inventory in January 2018.) 1. COGS absorption costing $4,140,000 Number of goggles produced 245,000 Number of goggles sold 230,000 Sales price per unit 28 Variable manufacturing cost per unit Sales commission cost per unit 10 2 Fixed manufacturing overhead 1,960,000 Fixed selling and administrative costs 260,000 Requirements 1. Prepare both conventional (absorption costing) and contribution margin (variable costing) income statements for Mike's Magnificent Eyewear for the year ended December 31, 2018. 2. Which statement shows the higher operating income? Why? 3. Mike's Magnificent Eyewear's marketing vice president believes a new sales promotion that costs $40,000 would increase sales to 235,000 goggles. Should the company go ahead with the promotion? Give your reasoning