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The annual data that follow pertain to Dan's Dynomite Eyewear, a manufacturer of swimming goggles....

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Accounting

The annual data that follow pertain to Dan's Dynomite Eyewear, a manufacturer of swimming goggles. (Dan's Dynomite Eyewear had no beginning Finished Goods Inventory in January.)
(Click the icon to view the data.)
Read the requirements.
Requirement 1. Prepare both conventional calculations to the nearest cent.)
Begin by preparing Dan's Dynomite Eyewe
Dan's Dynomite Eyewea Income Statement (Absorption Year Ended December 3
Operating Income
Requirements
Prepare both conventional (absorption costing) and contribution margin (variable costing) income statements for Dan's Dynomite Eyewear for the year ended December 31.
Which statement shows the higher operating income? Why?
Dan's Dynomite Eyewear's marketing vice president believes a new sales promotion that costs $120,000 would increase sales to 230,000 goggles. Should the company go ahead with the promotion? Give your reasoning.
Data table
\table[[Number of goggles produced,240,000],[Number of goggles sold,220,000],[Sales price per unit,40],[Variable manufacturing cost per unit,12],[Sales commission cost per unit,5],[Fixed manufacturing overhead,720,000],[Fixed selling and administrative costs,130,000]]
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