The annual data that follows pertain to Sea Down There, 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 Sea Down There for the year. Begin with the conventional (absorption costing) income statement. Sea Down There Income Statement (Absorption Costing) For the Year Ended December 31 Data table Sales revenue Less: Cost of goods sold Gross profit Less: Operating expenses Operating Income $ 9,045,000 Sales price $ 45 Variable manufacturing expense per unit $ 18 Sales commission expense per unit $ 13 Fixed manufacturing overhead $ 1,935,000 Fixed operating expenses Number of goggles produced $ 245,000 215,000 Number of goggles sold 201,000 Requirements 1. Prepare both conventional (absorption costing) and contribution margin (variable costing) income statements for Sea Down There 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 215,000 goggles. Should the company go ahead with the promotion? Give your reason