Whitman Company has just completed its first year of operations. The companys absorption costing income statement for the year follows: Whitman CompanyIncome StatementSales $(39,000$ units $\backslash$times $$41\mathrm{.}10$ per unit$)$$ $1,602,900$Cost of goods sold $(39,000$ units $\backslash$times $$20$ per unit$)780,000$Gross margin$822,900$Selling and administrative expenses$409,500$Net operating income$ $413,400$ The companys selling and administrative expenses consist of $$292,500$ per year in fixed expenses and $$3$ per unit sold in variable expenses. The $$20$ unit product cost given above is computed as follows: Direct materials$ $9$Direct labor$3$Variable manufacturing overhead$2$Fixed manufacturing overhead $($$$318,000-$: $53,000$ units$)6$Absorption costing unit product cost$ $20$ Required:$1.$ Redo the companys income statement in the contribution format using variable costing$\mathrm{.}2.$ 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.