The annual data that follows pertain to Goggles Only, a manufacturer of swimming goggles (the company had no beginning inventory): (Click the icon to view the data.) Requirements 1. Prepare both conventional (absorption costing) and contribution margin (variable costing) income statements for Goggles Only 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 $135,000 would increase sales to 240,000 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 Goggles Only for the year. Begin with the conventional (absorption costing) income statement. Goggles Only Income Statement (Absorption Costing) For the Year Ended December 31 Sales revenue 10,672,000 Less: Cost of goods sold Gross profit Less: Operating expenses Operating income A A Sales price Variable manufacturing expense per unit .... $ Sales commission expense per unit ........ Fixed manufacturing overhead $ 2,400,000 Fixed operating expenses 250,000 Number of goggles produced 240,000 Number of goggles sold 232,000 A