Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year follows: Whitman Company Sales (41,000 units Income Statement $45.10 per unit) Cost of goods sold (41,000 units $23 per unit) Gross margin Selling and administrative expenses Net operating income $ 1,849,100 943,000 906,100 471,500 $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 $23 unit product cost given above is computed as follows: Variable manufacturing overhead Direct materials $ 11 Direct labor Fixed manufacturing overhead ($318,000 53,000 units) $ 23 Absorption 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. Complete this question by entering your answers in the tabs below.