Chap 7 GRADED Saved 2 Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year follows: 20 points Whitman Company Income Statement Sales (40.000 unita $42.60 per unit) Coat of goods sold (40.000 units $23 per unit) Cross margin Selling and administrative expenses Net operating income $1,704,000 220,000 784,000 500.000 284,000 Book The company's selling and administrative expenses consist of $300,000 per year in fixed expenses and $5 per unit sold in variable expenses. The $23 unit product cost given above is computed as follows: Prim 810 5 Direct materiala Direct labor Variable manufacturing overhead mixed manufacturing overhead (6212,000 53,000 unita) Absorption costing unit product cont References 523 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 taba balow. Required 1 Required 2 Redo the company's income statement in the contribution format using variable costing Whian Company Variable Coating meam Bitment 21.UUU 53,000 units Absorption conting unit product cost $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 Conting and Absorption Couting Net Operating Incomes Variable costing net operating Income Absorption conting net operating income