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: Prior Year 2,500 units 3,400 units Current Year 4,300 units 3, 400 units Sales Production Production cost Factory-variable (per unit) -fixed Marketing-variable Administrative-fixed $ 0.60 $ 1,700 $ 0.40 $ 500 $ 0.60 $ 1,700 $ 0.40 $ 500 Required: 1. Prepare an income statement for each year based on full costing. 2. Prepare an income statement for each year based on variable costing. Required 1 Required 2 Required 3 Prepare an income statement for each year based on full costing. YALE COMPANY Full Costing Income Statement Prior Year $ Current Year $ 7,500 12,900 Sales Less: Cost of goods sold Beginning inventory Cost of goods produced Available for sale Less: Ending inventory 0 Cost of goods sold Gross margin Less: Selling and administrative costs Variable Fixed Operating income Required 1 Required 2 Required 3 Prepare an income statement for each year based on variable costing. YALE COMPANY Variable Costing Income Statement Prior Year Current Year Sales Less: Cost of goods sold Beginning inventory Cost of goods produced $ 0 0 Available for sale Less: Ending inventory 0 0 Cost of goods sold Add: Variable selling and administrative Contribution margin Less: Fixed manufacturing costs Less: Selling and administrative costs Fixed Operating income