Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year follows: Whitnan Company Income Statement Sales (39,000 units X $44.60 per unit) $ 1,739, 400 Cost of goods sold (39,000 units X $25 per unit) 975.000 Gross margin 764,400 Selling and administrative expenses 448,500 Net operating income $ 315,900 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 $25 unit product cost given above is computed as follows: $ 12 5 Direct materials Direct labox Variable mamfacturing overhead Fixed manufacturing overhead ($250,000 + 50,000 units) Absorption costing unit product cost 5 $ 25 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 va Whitman Company Variable Costing Income Statement Sales Variable expenses Variable cost of goods sold $ 780,000 Fixed selling and administrative expense 195,000 975,000 (975,000) $ (975,000) 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