The annual data that follow pertain to Rick's Radical Eyewear, a manufacturer of swimming goggles. (Rick's Radical Eyewear had no beginning inventories.) E: (Click the icon to view the data.) Requirements 1. Prepare both conventional absorption costing) and contribution margin (variable costing) income statements for Rick's Radical Eyewear for the year. 2. Which statement shows the higher operating income? Why? Reconcile the difference between the two statements. 3. Rick's Radical Eyewear's marketing vice-president believes a new sales promotion that costs $195,000 would increase sales to 240,000 goggles. Should the company go ahead with the promotion? Give your reason. Data Table $ 39 Sale price Variable manufacturing expense per unit 15 5 Sales commission expense per unit Fixed manufacturing overhead Fixed operating expenses Number of goggles produced Number of goggles sold 2,400,000 275,000 240,000 225,000 Print Done