requirement 2 and 3

2. which statement shows the higher operating income? Why?

3. The company marketing vice president believes a new sales promotion that cost $140,000 would increase sales to 235,000 goggles. Should the company go ahead with a promotion? Give your reason.

Data table 1 2t Sales 10.NO.000 Los cost of goods sold 7481,000 GOS 3.405.000 Operating expen 2.051.000 Opowing income 5354.000 Now it's prepare the contrbution margin variable income forway for the you Shady Contribution Margin (Variable Coating Income Statement For the Year Ended December 31 Sees van 1000000 Los Vagones Varane anges 20 Cost of goods sold Contribution margin Losseed expenses Fored manufacturing ved Operating expenses Operating income Sales Vibe manufacturing expense per unit Sales comme prit Facturing overed heden Number of produced Number of the sold 32.100.000 5 255.000 227.000 Print Done Data table RI $ GA ---- Sales price..... .....$ 48 Variable manufacturing expense per unit ... 21 Sales commission expense per unit $ 8 Fixed manufacturing overhead $ 2,820,000 Fixed operating expenses... $ 235,000 Number of goggles produced 235,000 Number of goggles sold 227,000 ..... ... Print Done Requirements 1. Prepare both conventional (absorption costing) and contribution margin (variable costing) income statements for Shady 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 $140,000 would increase sales to 235,000 goggles. Should the company go ahead with the promotion? Give your reason. Print Done Requirement 1. Prepare both convertion absorption conting and werbution margin (variate contro come statements to hay for the you. Begin with the concerned abortion contra noorte werk. Shady Income Statement(Absorption Costinal For the Year Ended December 31 510,000.000 La Cost of goods sold 7491.000 Gross profit 3.400.000 2,001000 Les Operating expenses Operating income 5 1.354,000 Now lor's prepare the contribution margin (variable costing income statement for Shady for the year Shady Contribution Margin (Variable Coating) Income Statement For the Year Ended December 31 Bolos 5 10.9.200 Lose Variable expenses Variable apariting Contribution margin