Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year a ppears below: Whitman Company Income Statement Sales (41,000 units x $44.10 per unit) Cost of goods sold (41,000 units x $22 per unit) $1,808,100 902,000 Gross margin Sel 906,100 471,500 lling and administrative expenses Net operating income $ 434,600 The company's selling and administrative expenses consist of $307,500 per year in fixed expenses and $4 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 Fixed manufacturing overhead ($250,000 5 50,000 units) Absorption costing unit product cost $22