Ch.6: Homework Saved Exercise 6-12 Variable Costing Income Statement; Reconciliation [LO6-2, LO6-3] Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year follows: 2 points Whitman Company Income Stat Sales (39,000 units $41.18 per unit) Cost of goods sold (39,80e units x $19 per unit) Gross margin Selling and administrative expenses Net operating income $1,682,900 741,000 861,900 409,500 $ 452,400 eBook Hint Print The company's selling and administrative expenses consist of $292,500 per year in fixed expenses and $3 per unit sold in variable expenses. The $19 unit product cost glven above is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($212,000 53,000 units) Absorption costing unit product cost 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 varlable costing income statement and the net operating income on the absorption costing income statement above