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The 20X6 data that follow pertain to Rays, a manufacturer of swimming goggles. Rays had no beginning inventories in January 20X6. Selling price per unit

The 20X6 data that follow pertain to Rays, a manufacturer of swimming goggles. Rays had no beginning inventories in January 20X6. Selling price per unit $35.00 Variable manufacturing expense per unit $15.00 Sales commission expense per unit $5.00 Fixed manufacturing overhead $2,000,000 Fixed operating expense # of goggles produced # of goggles sold $250,000 200,000 185,000 Calculate the following for Rays Required: a) i) ii) iii) b) c) The total cost per unit The value of ending inventories using marginal costing The value of ending inventories using total costing Prepare a variable costing (contribution margin) income statement for Rays for the year ended December 31, 20X6. Rays marketing vice president believes a new sales promotion that costs $150,000 would increase sales to 200,000 goggles. Should the company go ahead with the promotion? Give your reason

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