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) 3,300 units 6,700 units Production (000s) 5,000 units 5,000 units Production cost Factoryvariable (per unit) $ 0.60 $ 0.60 fixed (000s) $ 2,500 $ 2,500 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.

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.) Prepare an income statement for each year based on full costing. (Enter your answers in thousands of dol Complete this question by entering your answers in the tabs below. Prepare an income statement for each year based on variable costing. (Enter your answers in thousands of dollars