The part sells for $$43$ per unit and they had sales of $24,700$ units in the current year, $2021.$ They had no inventory on hand at the beginning of $2021$ and are projecting sales of $28,100$ units in $2022.$They are planning the same production level for $2022$ as in $2021,26,400$ units. The variable manufacturing costs are $$14,$ and the variable selling costs are only $$0\mathrm{.}50$ per unit. The fixed manufacturing costs are $$211,200$ per year, and the fixed selling costs are $$640$ per year.

Required:

$1.$ Prepare an income statement for each year using full costing.

$2.$ Prepare an income statement for each year using variable costing.

$3.$ Prepare a reconciliation of the difference each year in the operating income resulting from the full and variable costing methods.