P-M:6-35B. Using variable and absorption costing, making decisions (Learning Objectives 1, 2,3) The annual data that follow pertain to Eli's Electric Eyewear, a manufacturer of swimming goggles. (Eli's Electric Eyewear had no beginning Finished Goods Inventory in January.) Requirements 1. Prepare both conventional (absorption costing) and contribution margin (variable costing) income statements for Eli's Electric Eyewear for the year ended December 31 . 1. FC variable costing $1,720,000 2. Which statement shows the higher operating income? Why? 3. Eli's Electric Eyewear's marketing vice president believes a new sales promotion that costs $60,000 would increase sales to 220,000 goggles. Should the company go ahead with the promotion? Give your reasoning