Exercises 18-44 (Algo) Profit Centers: Comparison of Variable and Full Costing [LO 18-3, 18-4] Yale Company manufactures hair brushes that sell at wholesale for $3 per unit. The company had no beginning inventory in the prior year. These data summarize the current and prior year operations: Sales (000s) Production (0005) Production cost Factory-variable (per unit) -fixed (000s) Marketing-variable (per unit) Administrative-fixed (000s) Required: Prior Year 2,000 units 2,400 units $ 0.60 $ 1,200 $ 0.40 $ 500 1. Prepare an income statement for each year based on full costing. 2. Prepare an income statement for each year based on variable costing. Current Year 2,800 units 2,400 units $ 0.60 $ 1,200 $ 0.40 $ 500 3. Prepare a reconciliation of the difference each year in the operating income resulting from using the full costing method and variable costing method.