The annual data that follow pertain to Dan's Dynomite Eyewear, a manufacturer of swimming goggles. Dans Dynomite Eyewear had no beginning Finished Goods Inventory in January.
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Read the requirements.
Requirement 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
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
Which statement shows the higher operating income? Why?
Dan's Dynomite Eyewear's marketing vice president believes a new sales promotion that costs $ would increase sales to goggles. Should the company go ahead with the promotion? Give your reasoning.
Data table
tableNumber of goggles produced,Number of goggles sold,Sales price per unit,Variable manufacturing cost per unit,Sales commission cost per unit,Fixed manufacturing overhead,Fixed selling and administrative costs,
