updated: need help with last part

The annual data that follows pertain to Rick's Radical Eyewear, 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 (vaniable costing) income statements for Rick's Radical Eyewear 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 Rick's Radical Eyewear for the year. Begin with the conventional (absorption costing) income statement Rick's Radical Eyewear Income Statement (Absorption Costing) For the Year Ended December 31 Sales revenue Less: Cost of goods sold Gross profit 9,280.000 5,800,000 3,480,000 1,632.000 S 1,848.000 ncome Now let's prepare the contribution margin (variable costing) income statement for Rick's Radical Eyewear for the year Rick's Radical Eyewear Contribution Margin (Variable Costing) Income Statement For the Year Ended December 31 3ales revenue 5 9,280,000 Variable expenses Variable cost of goods sold Variable operating expenses Less 5 3.480,000 1,392,000 4,408,000 Contribution margin Less: Fixed expenses Fixed manufacturing overhead 2400,000 240,000 S 1,768,000 Fixed operating expenses Operating income Requirement 2. Which statement shows the higher operating income? Why? The annual data that follows pertain to Rick's Radical Eyewear, a manufacturer of swimming goggles (the company had no beginning inventory)- EB (Click the icon to view the data.) equirements 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? 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 low let's prepare the contribution margin (variable costing) income statement for Rick's Radical Eyewear for the year Rick's Radical Eyewear Contribution Margin (Variable Costing) Income Statement For the Year Ended December 31 Sales revenue S 9280,000 Variable expenses Variable cost of goods sold Variable operating expenses ess S 3.480,000 1,392,000 4.408,000 Contribution margin ess: Fixed expenses 2 400,000 240,000 S 1.768,000 Fixed manufacturing overhead Fixed operating expenses Operating income equirement 2. Which statement shows the higher operating income? Why? Absorption costing operating income is efers 80,000 of fixed manufacturing overhead as an asset in ending inventory. In contrast, variable costing expenses ll of the fixed manufacturing overhead during the year ariable costing expenses S less than absorption costing income equirement 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. se the contribution margin income statement fomat to evaluate the sales promotion. higher than variable costing operating income. This is because absorption costing 80,000 more costs during the year, so variable costing operating income is 80,000 the year in contribution margin 135,000 ncrease in fixed expenses ncrease in operating income Data Table 40 Sales price Variable manufacturing expense per unit $ Sales commission expense per unit Fixed manufacturing overhead Fixed operating expenses 15 $ 2,400,000 $ 240,000 240,000 232,000 Number of goggles produced Number of goggles sold PrintDone