Jackson Company produces plastic that is used for injection-molding applications such as gears for small motors. In 2016, the first year of operations, Jackson produced 4,000 tons of plastic and sold 3,500 tons. In 2017, the production and sales results were exactly reversed. In each year, the selling price per ton was $2,000, variable manufacturing costs were 15% of the sales price of units produced, variable selling expenses were 10% of the selling price of units sold, fixed manufacturing costs were $2,800,000, and fixed administrative expenses were $500,000.

I need help with the last part of this question. Marked with red boxes. Please answer the question in same table format.

Reconcile the differences each year in net income under the two costing approaches.

JACKSON COMPANY Income Statement For the Year Ended December 31, 2016 Variable Costing Sales Variable Cost of Goods Sold Inventory, January 1 Variable Costs of Goods Manufactured 1200000 Variable Costs of Goods Available for Sale v 1200000 Inventory, December 31 (150000) Variable Cost of Goods Sold 1050000 Variable Selling Expenses 700000 Contribution Margin 2800000 Fixed Manufacturing Overhead Fixed Administrative Expenses 500000 Net Income/(Loss) 7000000 1750000 5250000 3300000 1950000