Whitman Company absorption costing has just completed its first year of operations. The com income statement for the year appears below: Whitman Company Income Statement Sales (39,000 units x $42.10 per unit) 1,641,900 Cost of goods sold (39,000 units x $22 per unit) 858,000 Gross margin 783,900 Selling and administrative expenses 448,500 Net operating income 335,400 $4 The company's selling and administrative expenses consist of $292,500 per year in fixed expenses and per unit sold in variable expenses. The $22 per unit product cost given above is computed Direct materials 11 Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($250,000 50,000 units) Absorption costing unit product cost 22 Required: 1. Prepare the company's income statement in the contribution format using variable costing