The annual data that follows pertain to Shady, a manutacturer of swimming poogle (the company...
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The annual data that follows pertain to Shady, a manutacturer of swimming poogle (the company had no beginning inventory (Click the icon to view the data.) Read the requirements are: Requirement 1. Prepare both conventional (absorption conting) and contribution margin (variable costing) income statements for Shady for the year. Begin with the nissic conventional (absorption costing) income statement Shady Qu Income Statement (Absorption Costing) For the Year Ended December 31 Asim A sim Less: Operating expenses 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 $150,000 would increase sales to 230,000 goggles. Should the company go ahead with the promotion? Give your reason. Print Done - X Data table ... Sales price .... $ 47 Variable manufacturing expense per unit .. $ 22 Sales commission expense per unit .... $ 7 Fixed manufacturing overhead ....$ 2,990,000 Fixed operating expenses $ 260,000 Number of goggles produced 230,000 Number of goggles sold 215,000 Print Done
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