Requirement 1: Prepare both conventional (absorption costing) and contribution margin (variable costing) income statementz for Carl's Crazy Eyewar for the year ended December 31, 2016.

DATA TABLE:

Number of goggles produced: $150,000

Number of goggles sold: $130,000

Sales price per unit: $33

Variable manufacturing cost per unit: $10

Sales commision cost per unit: $2

Fixed manufacturing overhead: $1,200,000

Fixed selling and administrative costs: $160,000

Begin by preparing Carl's Crazy Eyewears conventional (absorption cost Prepare Carl's Crazy Eyewear s contribution margin (variable costing) Carl's Crazy Eyewear Carl's Crazy Eyewear Income Statement (Absorption Costing) Income Statement (Variable Costing) Year Ended December 31, 2016 Year Ended December 31, 2016 Operating Income Operating Income