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In: AccountingYale Company manufactures hair brushes that sell at wholesalefor $3 per unit. The company had...Yale Company manufactures hair brushes that sell at wholesalefor $3 per unit. The company had no beginning inventory in theprior year. These data summarize the current and prior yearoperations:Prior YearCurrent YearSales3,500units7,300unitsProduction5,400units5,400unitsProduction costFactory—variable (per unit)$0.60$0.60—fixed$2,700$2,700Marketing—variable$0.40$0.40Administrative—fixed$500$500Required: 1. Prepare an income statement for each year based onfull costing. 2. Prepare an income statement for each year based onvariable costing. 3. Prepare a reconciliation of the differenceeach year in the operating income resulting from using the fullcosting method and variable costing method.PLEASE ANSWER WITH EXPLANATIONS ASAP, THANK YOU!