Please solve Requirement 3

Data table Now let's prepare the contribution margin (variable costing) income statement for Rays for the year. Rays 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. Now let's prepare the contribution margin (variable costing) income statement for Rays for the year. Requirement 2. Which statement shows the higher operating income? Why? Absorption costing operating income is variable costing operating income. 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 $150,000 would increase sales to 230,000 goggles. Should the company go ahead with the promotion? Give your reason. Use the contribution margin income statement format to evaluate the sales promotion