The annual data that follows pertain to Rays, a manufacturer of swimming goggles (the company had no beginning inventory): (Click the icon to view the data.) Read the requirements. 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. Rays Income Statement (Absorption Costing) For the Year Ended December 31 Less: Less: Operating expenses i X Data Table i X Requirements Sales price..... 46 Variable manufacturing expense per unit ... $ 17 Sales commission expense per unit 14 Fixed manufacturing overhead $ 2,000,000 Fixed operating expenses.. $ 255,000 Number of goggles produced 200,000 Number of goggles sold 188,000 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? 3. The company 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. Print Done