Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year follows: Whitman Company Income Statement Sales (42, 000 units x $41.10 per unit) $ 1, 726, 200 Cost of goods sold (42, 080 units x $25 per unit) 1, 050, 006 Gross margin 676, 200 Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year Selling and administrative expenses 483, 000 follows: Net operating income $ 193, 200 Whitman Company The company's selling and administrative expenses consist of $315,000 per year in fixed expenses and $4 per unit sold in variable Income Statement expenses. The $25 unit product cost given above is computed as follows: Sales (42,000 units x $41.10 per unit) $ 1, 726, 200 Cost of goods sold (42,000 units x $25 per unit) 1, 050,000 Gross margin 676, 200 Direct materials Selling and administrative expenses 483, 000 Direct labor Variable manufacturing overhead Net operating income $ 193, 200 Fixed manufacturing overhead ($300,080 + 50,090 units) Absorption costing unit product cost $ 25 The company's selling and administrative expenses consist of $315,000 per year in fixed expenses and $4 per unit sold in variable expenses. The $25 unit product cost given above is computed as follows: Required: 1. Redo the company's income statement in the contribution format using variable costing. Direct materials 2. Reconcile any difference between the net operating income on your variable costing income statement and the net operating Direct labor Variable manufacturing overhead income on the absorption costing income statement above. Fixed manufacturing overhead ($300,000 : 50,000 units) Absorption costing unit product cost $ 25 Complete this question by entering your answers in the tabs below. 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 Required 1 Required 2 income on the absorption costing income statement above. Redo the company's income statement in the contribution format using variable costing. Complete this question by entering your answers in the tabs below. Whitman Company Variable Costing Income Statement 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