Pearl city heating is a small manufacturer of auxiliary heaters. The units sell for $330 each. In 2017, the company produced 960 units and sold 780 units. There was no beginning inventory. Below are variable and full costing income statements for 2017. Reconcile the difference in profit between the two income statements.

https:/ Jiambalvo, Managerial Accounting, Ge Help PRINTER VERSION Question 2 Pearl City Heating is a small manufacturer of auxiliary heaters. The units sell for $330 each. In 2017, the company produced 960 units and sold 780 units. There was no beginning inventory. Below are variable and full costing income statements for 2017 Income Statement Prepared Using Variable Costing Pearl City Heating Company Income Statement For the Year Ending December 31, 2017 Sales $257,400 Less variable costs Variable cost of goods sold Variable selling expense $29,000 17.40046,400 211,000 Contribution margin Less fixed costst Fixed manufacturing expense Fixed selling expense Fixed administrative ex 49.920 21,400 29,800101,120 Net Income $109,8B Prepared Using Full Costing Pearl City Heating Company Income Statement For the Year Ending December 31, 2017 $257 400 69,560 Sales Less cost of goods sold Gross margin Less selling and administrative expenses: 187,840 Selling expense $38,800 7:47 PM 2/19/2019 Jiambalvo, Managerial Accounting, 6e Help I System Announcements Net income $109,880 Income Statement Prepared Using Full Costing Pearl City Heating Company Income Statement For the Year Ending December 31, 2017 $257,400 69,560 187,840 Sales Less cost of goods sold Gross margin Less selling and administrative expenses: Selling expense Administrative expense Net income $38,800 29,800 68,600 $119,240 Reconcile the difference in profit between the two income statements. Reconciliation Statement Income computed under variable costing Income computed under full costing