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: Sales (000s) Prior Year 2,900 units 4,200 units $ 0.60 $ 2,100 $ 0.40 $ 500 Current Year 5,500 units 4,200 units $ 0.60 $ 2,100 $ 0.40 Production (000s) Production cost Factory-variable (per unit) -fixed (000s) Marketing-variable (per unit) Administrative-fixed (000s) 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. $ 500 3. Prepare a reconciliation of the difference each year in the operating income resulting from using the full costing method and variable costing method. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare an income statement for each year based on full costing. (Enter your answers in thousands of dollars.) YALE COMPANY Less: Cost of goods sold Available for sale Cost of goods sold Gross margin Less: Selling and administrative costs Operating income Full Costing Income Statement Prior Year Current Year Required 1 Required 2 Required 3 Prepare an income statement for each year based on variable costing. (Enter your answers in thousands of dollars.) YALE COMPANY Less: Cost of goods sold Available for sale Cost of goods sold Contribution margin Less: Selling and administrative costs Variable Costing Income Statement Prior Year Current Year Operating income < Required 1 Required 3 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a reconciliation of the difference each year in the operating income resulting from using the full costing method and variable costing method. (Negative amounts should be indicated by a minus sign. Round your "Fixed overhead rate" answers to 2 decimal places. Enter your answers in thousands of dollars.) YALE COMPANY Reconciling Difference in Operating Income Between Full and Variable Costing Change in inventory in units x fixed overhead rate Difference in operating income Prior Year Current Year < Required 2 Required 3