3. The ROZAR sells its HAIRBRUSH at $5 per unit. The following data are related to its first two years of operation: SALES PRODUCTION COST: Variable manufacturing Fixed manufacturing Variable operating (marketing) Fixed operating (marketing) Required 2008 2009 1100 1300 1500 1100 800 600 800 800 1100 1300 500 500 a. Prepare income statements based on variable costing for each of the two years. b. Prepare income statements based on absorption costing for each of the two years. c. Prepare a numerical reconciliation and explanation of the difference between operating income for each year under absorption costing and variable costing. d. Critics have claimed that a widely used accounting system has led to undesirable buildups of inventory levels. (i) Is variable costing or absorption costing more likely to