0422 ales (40,000 units $44.60 per unit) Cont of goods sold (40.000 units * $21 per unit) Gross margin Selling and administrative expenses Net operating income $1,784,000 840,000 944,000 460,000 $ 484,000 100 The company's selling and administrative expenses consist of $300,000 per year in fixed expenses and $4 per unit sold in variable expenses. The $21 unit product cost given above is computed as follows: Hi $ 10 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($204,000 51.000 bits) Absorption conting unit product cont Print $21 ol ince Required: 1. Redo the company's income statement in the contribution format using variable costing. 2. Reconcile any difference between the net operating income on your variable costing Income statement and the net operating income on the absorption costing income statement above