4 Exercise 6-12 Variable Costing Income Statement; Reconciliation [LO6-2, LO6-3] 40 Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year follows: points Whitman Company Income Statement Sales (41,000 units x $41.10 per unit) $1, 94000 Gross marain old (41,000 units x $23 per unit) Selling and administrative expenses eBook 742,100 471,500 270,600 Net operating income Hint The company's selling and administrative expenses consist of $307,500 per year in fixed expenses and $4 per unit sold in variable expenses. The $23 unit product cost given above is computed as follows: Print Direct materials $10 Direct labor 5 References Variable manufacturing overhead Fixed manufacturing overhead ($240,000 48,000 units) 5 23 Absorption costing unit product cost 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