3 Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year follows: 10 points Whitman Company Income Statement Sales (39,800 units * 543.10 per unit) Cost of goods sold (39,eee units X $23 per unit) Gross margin Selling and administrative expenses Net operating income $1,682,989 897,000 783,920 409,580 $ 374,480 eBook The company's selling and administrative expenses consist of $292.500 per year in fixed expenses and $3 per unit sold in variable expenses. The $23 unit product cost given above is computed as follows: Hint $ 11 Print Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($238,800 = 45,cee units) Absorption costing unit product cost $ 23 References 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Redo the company's income statement in the contribution format using variable costing. Whitman Company Variable Costing Income Statement d Required 2 > 3 10 points Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year follows: Whitman Company Income Statement Sales (39,808 units $43.1e per unit) $1,688,989 Cost of goods sold (39,eee units * $23 per unit) 897,880 Gross margin 783,988 Selling and administrative expenses 489, see Net operating income 374,480 eBook Hint The company's selling and administrative expenses consist of $292,500 per year in fixed expenses and $3 per unit sold in variable expenses. The $23 unit product cost given above is computed as follows: Print Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($230,890 = 45,eee units) Absorption costing unit product cost $11 5 2 References $ 23 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. Complete this question by entering your answers in the tabs below. Required 1 Required 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. (Enter any losses or deductions as a negative value.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income Absorption costing net operating income