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 Current Year

Sales $(000$s$)1,800$ units $2,200$ units

Production $(000$s$)2,000$ units $2,000$ units

Production cost

Factory$$variable $($per unit$)$ $ $0\mathrm{.}60$ $ $0\mathrm{.}60$

$$fixed $(000$s$)$ $ $1,000$ $ $1,000$

Marketing$$variable $($per unit$)$ $ $0\mathrm{.}40$ $ $0\mathrm{.}40$

Administrative$$fixed $(000$s$)$ $ $500$ $ $500$

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.

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