Exercise 5-12 Variable Costing Income Statement, Reconciliation (LO5-2, L05-3] Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year appears below Whitman Company Income Statement Sales (40 000 units 541 60 per unit) S 1,664000 Cost of goods sold (40.000 units $22 per unit) Gross margin Seng and administrative expenses 400.000 Net operating income The company's selling and administrative expenses consist of $300,000 per year in fixed expenses and 54 per unit sold in variable expenses. The $22 per unit product cost given above is computed as follows Direct materials Direct labor Variable manufacturing overhead ced manufacturing overhead ($300.000 - 50.000 units) Absorption costing unit product cost 1. Prepare the company s income statement in the contribution format using variable costing Whitman Company Variable Costing Income Statement 1223 AM ** ENG 107/2019 Type here to search oa e o Required: 1. Prepare the company's income statement in the contribution format using variable costing Whitman Company Variable Costing Income Statement Variable expenses Fixed expenses 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 Costing and Absorption Costing Net Operating Incomes flosses) Variable costing net operating income loss) Absorption costing net operating income (loss) Type here to search hp