ompary has just completed its first year of operations. The company's absorption costing income statement for the year appears below ompany Income Statement Sales (41,000 units $43.10 per unit) $ 1,767,100 Cost of goods sold (41,000 units x $25 per ui) ,025,000 Groas margin Selling and administratve expenses 742,100 512,500 Net operating income $ 229,600 The company's selling and administrative expenses consist of $307,500 per year in fioxed expenses and $5 per unit sold in variable expenses. The $25 per unit product cost given above is computed as follows Direct materials Direct labor Variable manufacturing overhead Fbxed manufacturing overhead ($276,000 46,000 units) $10 Absorption costing unit product cost $25 Required: 1. Prepare the company's income statement in the contribution format using variable costing. Variable Costing Income Statement Variable expenses: Fxxed expenses: 2. Reconcile any difference between the net operating income on your variable costing income statement and he net operating income on the absorption costing income statement Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income (loss) Absorption costing net operating irn (oss) oSS