Requirement 1. Prepare an absorption costing income statement for (a) the first year of operations and (b) the second year of operations. 1. Prepare an absorption costing income statement for the following: a. The first year of operations b. The second year of operations 2. Before you prepare the variable costing income statements for Harley, predict the company's operating income using variable costing for both its first year and its second year without preparing the variable costing income statements. Hint: Calculate the variable costing operating income for a given year by taking that year's absorption costing operating income and adding or subtracting the difference in operating income as calculated using the following formula: Difference in operating income =( Change in inventory level in units x Fixed MOH per unit) 3. Prepare a variable costing income statement for each of the following years: a. The first year of operations b. The second year of operations Requirement 1. Prepare an absorption costing income statement for (a) the first year of operations and (b) the second year of operations. 1. Prepare an absorption costing income statement for the following: a. The first year of operations b. The second year of operations 2. Before you prepare the variable costing income statements for Harley, predict the company's operating income using variable costing for both its first year and its second year without preparing the variable costing income statements. Hint: Calculate the variable costing operating income for a given year by taking that year's absorption costing operating income and adding or subtracting the difference in operating income as calculated using the following formula: Difference in operating income =( Change in inventory level in units x Fixed MOH per unit) 3. Prepare a variable costing income statement for each of the following years: a. The first year of operations b. The second year of operations