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 (000s)	3,700	units	7,900	units
Production (000s)	5,800	units	5,800	units
Production cost
Factoryvariable (per unit)	$ 0.60		$ 0.60
fixed (000s)	$ 2,900		$ 2,900
Marketingvariable (per unit)	$ 0.40		$ 0.40
Administrativefixed (000s)	$ 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.