Below are listed the sales price and production costs for Willow Ladders in its first year of production: Sales price per ladder $200 Total variable manufacturing costs $1,000,000 Total fixed manufacturing costs $360,000 Total variable Selling Costs $120,000 Total Fixed Selling Costs $60,000 Units produced 10,000 Units sold 9,000 (1) Prepare the Full Absorption and Variable Costing Income Statement for Willow Ladders. (4 points) (2) In its second year, Willow Ladders produced 10,000 ladders and sold 9,500 ladders. The fixed manufacturing cost per ladder in the second year is $35. Using the Income Reconciliation Rule, determine the difference in the Full Absorption and Variable Costing Income in Year 2. (2 points)A B C D E F 1 Sales price per ladder $200 Total Variable manufacturing $1,000,000 cost Total fixed manufacturing $360,000 costs Total Variable Selling Costs $120,000 Total Fixed Selling Costs $60,000 Units produced 10,000 Units sold 9,000 (1) Year 1 Income Statement 10 Full Absorption Variable Costing 11 Revenue Revenue 12 Cost of Goods Sold Cost of Goods Sold 13 Gross Margin Variable Selling Costs 14 Selling Costs Contribution Margin 15 Operating Income Fixed Mfg Costs 16 Fixed Selling Costs 17 Operating Income 18 19 COGM per ladder 20 21 22 23 (2) Income Reconciliation in Year 2 24 25 Beginning Inventory in Year 2 26 Production in Year 2 10,000 27 Sales in Year 2 9,500 28 Ending Inventory in Year 2 29 30 Fixed Mfg Cost per ladder in Year 1 31 Fixed Mfg Cost per ladder in Year 2 32 33 Income difference in Year 2