Morey Company has just completed its first year of operations. The company's absorption costing income statement for the year appears below: Morey Company Income Statement Sales (41,000 units at $44.60 per unit) Cost of goods sold (41,000 units * $24 per unit) $1828 984,000 Gross margin Selling and administrative expenses 844,600 512,500 Net operating income $ 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 company's $24 per unit product cost given above is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($260,000 - 52,000 units) Absorption costing unit product cost Required: 1. Prepare the company's income statement in the contribution format using variable costing. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.) Variable Costing Income Statement (Click to select) Variable expenses: ( (Click to select) ((Click to select) (Click to select) Fixed expenses: (Click to select) ((Click to select) dopo i | (Click to select) 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. (Omit the "$" sign in your response.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income (Click to select) ) : (Click to select) Absorption costing net operating income $ C