The annual data that follow pertain to Aqua Goggles, a manufacturer of swimming goggles (the company had no beginning inventory): E (Click the icon to view the data.) Requirements 1. Prepare both conventional (absorption costing) and contribution margin (variable costing) income statements for Aqua Goggles for the year. 2. Which statement shows the higher operating income? Why? 3. The company marketing vice president believes a new sales promotion that costs $140,000 would increase sales to 220,000 goggles. Should the company go ahead with the promotion? Give your reason. Requirement 1. Prepare both conventional (absorption costing) and contribution margin (variable costing) income statements for Aqua Goggles for the year. Begin with the conventional (absorption costing) income statement. Aqua Goggles Income Statement (Absorption Costing) For the Year Ended December 31 Sales revenue $ 8,910,000 16038000 Less: Cost of goods sold Gross profit 7128000 250000 Less: Operating expenses 6878000 Operating income 45 Sales price Variable manufacturing expense per unit Sales commission expense per unit. $ 20 $ 7 $ 1,980,000 $ 250,000 Fixed manufacturing overhead Fixed operating expenses. . Number of goggles produced. Number of goggles sold 220,000 198,000