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 (41,000 units $42.60 per unit) $1,746,600 Cont of goods sold. (41,000 units * $20 per unit) 820.000 Gross margin 926,500 selling and administrative expenses 471, 500 Net operating Income 9 455,100 The company's selling and administrative expenses consist of $307,500 per year in fixed expenses and $4 per unit sold in variable expenses. The $20 unit product cost given above is computed as follows Direct materiale 9 Direct labor Variable manufacturing overhead Tixed manufacturing overhead ($260,000 - 52,000 units) Absorption conting unit product cost $20 3 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 Redo the company's income statement in the contribution format using variable costing. Whitman Company Variable Costing Income Statement Sales > 1,746,600 Variable expenses Variable cost of goods sold Variable selling and administrative O $ 369,000 164,000 Contribution margin Fixed expenses: 533,000 1,213,600 260,000 Fixed manufacturing overhead Fixed selling and administrative expense Net operating incomo 0 307,500 567,500 646,100 Hoguin Required 2 >