Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year follows: White Company Income Statement Sales (41,000 wats X 166.60 per unit) Cost of goods sold (41.000 units X $22 per unit) Grossargin Selling and administrative expenses Het operating income $1.828,600 902.000 926,600 430.500 $496,100 The company's selling and administrative expenses consist of S307.500 per year in fixed expenses and $3 per unit sold in variable expenses. The $22 unit product cost given above is computed as follows: $ 10 Direct Materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($312.000 52.000 units) Abrorption costing unit product cost Required: 1. Redo the company's income statement in the contribution format using variable costing 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 above. Required 1 Required 2 Redo the company's income statement in the contribution format using variable costing. Whitman Company Variable Costing Income Statement Sales Variable expenses Variable cost of goods sold Variable selling and administrative 0 0 Contribution margin Fred expenses Fixed manufacturing overhead Fixed selling and administrative expense 0 Net operating income $ 0 Required 1 Required 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 above. (Enter any losses or deductions as a negative value.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income Absorption costing net operating income