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 (39,000 units x $42.60 per unit) Cost of goods sold (39, eee units x $22 per unit) Gross margin Selling and administrative expenses $1,661,400 858,000 803,400 448,500 Net operating income $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 $22 unit product cost given above is computed as follows Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($240,00e+ 48,000 units) Absorption costing unit product cost $ 10 5 $ 22 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 income on the absorption costing income statement above. opprating Complete this question by entering your answers in the tabs below. Required 1 Required 2 Redo the company's income statement in the contribution format using variable costing. Whitman Company Variable Costing Income Statement Chapter 4 Graded Homework i Saved requirea: 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 6 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Redo the company's income statement in the contribution format using variable costing. Whitman Company Variable Costing Income Statement Sales $1,661,400 Variable expenses Variable cost of goods sold s 663,000 663,000 (153,000) Commissions Depreciation 1.173.000 488.400 Ending merchandise inventory Fixed manufacturing overhead Fixed selling and administrative expense Indirect labor 195.000 (292,500) (97,500) s 390.900 Fixed selling and administrative expense Net operating income Required 2 Requled