Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year follows: Sales (39,000 units Whitman Company Income Statement $41.60 per unit) Cost of goods sold (39,000 units $21 per unit) Gross margin Selling and administrative expenses Net operating income $1,622,400 819,000 803,400 448,500 $ 354,900 The company's selling and administrative expenses consist of $292,500 per year in fixed expenses and $4 per unit sold in variable expenses. The $21 unit product cost given above is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($260,000 52,000 units) Absorption costing unit product cost Required: $21 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.