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Required 1 Required 2 Reconcile any difference between the net operating income on your variable costing income statement and the net operatin 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 Income Statement Sales (41,000 units X $43.60 per unit) Cost of goods sold (41,000 units $23 per unit) Gross margin Selling and administrative expenses Net operating income $ 1,787,600 943,000 844,600 512,500 $ 332,100 The company's selling and administrative expenses consist of $307,500 per year in fixed expenses and $5 per unit sold in variable expenses. The $23 unit product cost given above is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($196,000 = 49,000 units) Absorption costing unit product cost $ 12 3 4 4 $ 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 ncome on the absorption costing income statement above. Complete this question by entering your answers in the tabs below. Required 1 Required 2 income on the absorption costing income statement above. X Answer is not complete. 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 Sales $ 1,787,600 Variable expenses: Variable cost of goods sold Variable selling and administrative $ 779,000 205,000 984,000 803,600 Fixed expenses: 0 Fixed manufacturing overhead Fixed selling and administrative expense Net operating income $ 803,600 Required 1 Required 2 >