Please do not give solution in image format thanku Required 1 Required 2 Required 3Prepare an income statement for each year based on full costing. (Enter your answers in thousands of dollars.)YALE COMPANYFull CostingIncome StatementPrior YearLess Cost of goods soldAvailable for saleCost of goods soldGross marginLess Selling and administrative costsOperating incomeLess Cost of goods soldAvailable for saleCost of goods soldContribution margin< Required 1Less Selling and administrative costsOperating incomeRequired 2 >Change in inventory in unitsx fixed overhead rateDifference in operating incomeYALE COMPANYVariable CostingIncome StatementPrior YearCurrent YearYALE COMPANYReconciling Difference in Operating IncomeBetween Full and Variable CostingPrior Year$Current YearCurrent Year0 $0 Yale Company manufactures hair brushes that sell at wholesale for $3 per unit. The company had no beginning inventory in the prioryear. These data summarize the current and prior year operations:Sales (000s)Production (000s)Production costFactory-variable (per unit).-fixed (000s)Marketing-variable (per unit)Administrative-fixed (000s)Prior Year2,400 units3,200 units$ 0.60$ 1,600$ 0.40$ 500Current Year4,000 units3,200 units$0.60$1,600$0.40$ 500Required: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 andvariable costing method.

Full costing takes both fixed as well as variable costs as production costs.But variable costing…

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) Production (000s) Production cost Factory-variable (per unit). -fixed (000s) Marketing-variable (per unit) Administrative-fixed (000s) Prior Year 2,400 units 3,200 units $0.60 $1,600 $ 0.40 $ 500 Current Year 4,000 units 3,200 units $0.60 $1,600 $0.40 $ 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.