Ariel Manufacturing Limited produces & sells a single product and uses an absorption costing system based on standard costs. The budgeted level of production is 25,000 units. The following are selected cost data for the first two years: Per unit amounts: Selling price Variable manufacturing costs Variable selling & administrative (per unit sold) 90 $500 150 Fixed costs: Fixed Manufacturing overhead Fixed selling and administrative $4,000,000 $1,400,000 Year 2 Ariel had the following production and sales data: Year 1 Units produced 25,000 Units sold 18,000 22,000 24,000 Required: 1. Prepare the income statements for year 18 year 2 using variable costing 2. Prepare the income statements for year 1& 2 using absorption costing. 3. Prepare a reconciliation of the difference in net income in each year between the two methods