1. Prepare the company's income statement in the contribution format using variable costing. The company's selling and administrative expenses consist of $292,500 per year in flxed expenses and $4 per unit sold in variable expenses. The $21 per unit product cost given above is computed as follows: given above is computed as follows: 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. Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year appears below