Please Assist me with this equation.

Huron Chalk Company had no beginning or ending work-in-process inventories for either year.

1.Prepare operating income statements for both years based on absorption costing.

Year 1Year 2Sales (in units)2,9002,900

Production (in units)3,3002,500Production costs:

Variable manufacturing costs$13,860$10,500

Fixed manufacturing overhead17,16017,160

Selling and administrative expenses:Variable11,60011,600Fixed10,60010,600

Selected information from Huron's year-end balance sheets for its first two years of operation is as follows:

HURON CHALK COMPANY

Selected Balance Sheet InformationBased on absorption costing End of Year 1End of Year 2Finished-goods inventory$3,760$0Retained earnings*17,54033,720Based on variable costingEnd of Year 1End of Year 2Finished-goods inventory$1,680$0Retained earnings*15,46033,720

2.Prepare operating income statements for both years based on variable costing.

3. numerical reconciliation of the difference in income reported under the two costing methods used in requirements (1) and (2).