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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

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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 * $42.10 per unit) Cost of goods sold (42,000 units $25 per unit) Gross margin Selling and administrative expenses Net operating income $1,763,200 1.050,000 728,200 483,000 $ 235,200 The company's selling and administrative expenses consist of $315.000 per year in fixed expenses and S4 per unit sold in variable expenses. The $25 unit product cost given above is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead (5318,000 + 53.000 units) Absorption costing unit product cost $ 12 4 3 6 $ 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, Complete this question by entering your answers in the tabs below. 15wers 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 0 0 0 $ $ 0 Rog1 Required 2 > 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. 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 (Required 1

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