X Data Table th Sales price $ 47 Variable manufacturing expense per unit... $ 15 Sales commission expense per unit ...... $ 5 Fixed manufacturing overhead $ 2,990,000 Fixed operating expenses $ 250.000 Number of goggles produced 230.000 Number of goggles sold 218.000 imm Print Done Requirement 1. Prepare both conventional (absorption costing) and contribution margin (variable costing) income statemen Swimmer Income Statement (Absorption Costing) For the Year Ended December 31 Less: Less: Operating expenses Swimmer Contribution Margin (Variable Costing) Income Statement For the Year Ended December 31 Less: MI Less: Requirement 2. Which statement shows the higher operating Income? Why? Absorption costing operating Income is variable costing operating incomo. This is because absorption costing defers of fixed manufacturing overhead as an asset in ending inventory. In contrast, variable costing expenses the fixed manufacturing overhead during the year. Variable costing expenses $ costs during the year, so variable costing operating income is $ than absorption costing income the year. Requirement 3. The company marketing vice president believes a new sales promotion that costs $170,000 would increase sales to 230.000 goggle Use the contribution margin income statement format to evaluate the sales promotion. Increase in contribution margin Increase in forced expenses Choose from any list or enter any number in the input fields and then continue to the next question Requirement 3. The company marketing vice president ballaves a new sales promotion that conts $170.000 would increase sales to 230,000 conclou Should the Une the contribution margin income statement format to evaluate the sales promotion Increase in contribution margin increase in foxed expenses Increase in operating income Swimmer with the promotion because the increase in contribution margin the increase in fixed costs