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 (35,200 units X $25 per unit) Cost of goods sold (35,000 units * $16 per unit) Gross margin Selling and administrative expenses Net operating income $875.000 560, eae 315,000 280.000 $ 35,00 The company's selling and siministrative expenses consist of $210,000 per year in fired expenses and $2 per unit sold in variable expenses. The $16 unit product cost given above is computed as follows: 1 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($160,200 40.ee units) Absorption costing unit product cost 4 $16 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. Raduired 1 Required 2 Redo the company's income statement in the contribution format using variable costing. Whitman Company Variable Cocting income tatement 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 (35,000 units $25 per unit) $875,00 Cost of goods sold (35,00 units $16 per unit) $68,000 Gross margin 315,000 Selling and administrative expenses 280.000 Net operating income $ 35,00 The company's selling and siministrative expenses consist of $210.000 per year in fixed expenses and $2 per unit sold in variable expenses. The $16 unit product cost given above is computed as follows: $ 5 6 1 UD Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($160,00 40,000 units) Absorption costing unit product cost $16 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 sbsorption 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 casting income statement and the net operating Income on the absorption costing Income statement above. (Enter any losses or decuctions as a negative value) Reconolation of Variable Corting and Abcorption Costing Net Operating income Variable coating net operating income Absorption costing net operating income