Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year appears below: The company's selling and administrative expenses consist of $300,000 per year in fixed expenses and $3 per unit sold in variable expenses. The $21 per unit product cost given above is computed as follows: The company's selling and administrative expenses consist of $300,000 per year in fixed expenses and $3 per unit sold in variable expenses. The $21 per unit product cost given above is computed as follows: Required: 1. Prepare the company's income statement in the contribution format using variable costing. \begin{tabular}{|l|l|r|} \hline \multicolumn{2}{|c|}{ Whitman Company } \\ \hline Sales & & $1,784,000 \\ \hline Variable expenses: & & \\ \hline Variable cost of goods sold & & \\ \hline Variable selling and administrative & & \\ \hline & & \\ \hline & & \\ \hline Contribution margin & & 1,784,000 \\ \hline Fixed expenses: & & \\ \hline Fixed manufacturing overhead & & \\ \hline Fixed selling and administrative & & \\ \hline & & \\ \hline & & \\ \hline Net operating income & & \\ \hline \end{tabular} 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