Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year appears below Whitman Company Income Statement Sales (38,000 units x $40.60 per unit) Cost of goods sold (38,000 units x $24 per unit) S 1,542,800 912,000 Gross margin Selling and administrative expenses 830,800 437,000 Net operating income S 193,800 The company's selling and administrative expenses consist of $285,000 per year in fored expenses and $4 per unit sold in variable expenses. The $24 per unit product cost given above is computed as follows Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($294.000-49.000 units)6 S 12 Absarption costing unit product cost $24 Required: 1 Prepare the company's income statement in the contribution format using vaniable costing Whitman Company Variable Costing income Statement 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 Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income (loss Absorption costing net operating inoome (loss) Hints References Book & Resoorces