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Read the requirements. Data table Prepare Al's Awesome Eyewear's contribution margin (variable costing) income...

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Accounting

Read the requirements.
Data table
Prepare Al's Awesome Eyewear's contribution margin (variable costing) income statement for the year ended December 31.
Requirements
Al's Awesome Eyewear
Income Statement (Variable Costing)
Year Ended December 31
Prepare both conventional (absorption costing) and contribution
margin (variable costing) income statements for Al's Awesome Eyewear for
the year ended December 31.
Which statement shows the higher operating income? Why?
Al's Awesome Eyewear's marketing vice president believes a new sales
promotion that costs $100,000 would increase sales to 170,000 goggles.
Should the company go ahead with the promotion? Give your reasoning.
Requirement 2. Which statement shows the higher operating income? Why?
The
income statement shows the higher operating income. The operating income under
costing is higher because the units sold
The difference in operating income
between the two income statements is attributable to the
attached to the units
image

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