Yale Company manufactures hair brushes that sell at wholesales for $3 a 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 1800 units 2200 units

Production . 2000 units 2000 units

Production cost

Factory-variable .6 per unit .6 per unit

fixed $1000 $1000

Marketing- var .4 per unit .4 per unit

Admin- fixed $500 $500

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 and explanation of the difference each year in the operating income resulting from using the full costing method and variable costing method