The annual data that follow pertain to Rays, a manufacturer of swimming goggles. (Rays had no beginning inventories.) (Click the icon to view the data.) Requirements 1. Prepare both conventional (absorption costing) and contribution margin (variable costing) income statements for Rays for the year. 2. Which statement shows the higher operating income? Why? Reconcile the difference between the two statements. 3. Rays' marketing vice-president believes a new sales promotion that costs $200,000 would increase sales to 200,000 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 Rays for the year. Begin with the conventional (absorption costing) income statement. (For entries with a zero balance, make sure to enter "0" in the appropriate cell.) Rays Conventional (Absorption Costing) Income Statement For the Year Ended December 31 The annual data that follow pertain to Rays, a manufacturer of swimming goggles. (Rays had no beginning inventories.) (Click the icon to view the data.) Requirements 1. Prepare both conventional (absorption costing) and contribution margin (variable costing) income statements for Rays for the year. 2. Which statement shows the higher operating income? Why? Reconcile the difference between the two statements. 3. Rays' marketing vice-president believes a new sales promotion that costs $200,000 would increase sales to 200,000 goggles. Should the company go ahead with the promotion? Give your reason. Operating income For the Year Ended December 31 Check answer #2 Beginning finished goods inventory Cost of goods available for sale Cost of goods manufactured Cost of goods sold : Ending finished goods inventory Gross profit Less: Cost of goods sold: Operating expenses HW Score: 42.5%, 42.5 of 100 points O Points: 0 of 20 turer of swimming goggles. (Rays had no beginning Save contribution margin (variable costing) income statements for ? Why? Reconcile the difference between the two promotion that costs $200,000 would increase sales to h the promotion? Give your reason. its Operating income Data table Sale price.. Variable manufacturing - X th ts $ 35 expense per unit 15 Sales commission expense per unit 5 Fixed manufacturing overhead 2,000,000 Fixed operating expenses 250,000 Number of goggles produced 200,000 Number of goggles sold 185,000 Print Done