$1684.000 880,000 Whitman Company Income Statement Sales (40.000 units * $42.10 per unit) Cost of goods sold (40,000 units * $22 per unit) Gross margin Selling and administrative expenses Net operating income 804,000 460,000 $ 344,000 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 $22 per unit product cost given above is computed as follows: $ 10 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($180,000 = 45.000 units) WO 4. Absorption costing unit product cost $ 22 Required: 1. Prepare the company's income statement in the contribution format using variable costing Whitman Company Variable Coating Income Statement Variable expenses: 0 0 Fixed expenses 0 0 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 Reconciliation of Variable Coating and Absorption Costing Net Operating Incomes Variable casting net operating income (los)