chapter 7 Graded Probxv Sauey Mode: Chapter 7 Graded 7 Exercise 7-12 Variable Costing Income Statement; Reconciliation [LO7-2, LO7-3 14.32 Whitman Company has just completed its first year of operations The company's absorption codting income statement for the year followt Incone Statenent Sales (39,00 units $40.ee per unit) Cost of goods sold (39-eee units $21 per unit) Gress nargin selling and adeinistrative expenses Net operating incone $1,583,488 764,490 448,590 315,900 rtwenaces The company's selling and administrative expenses consist of $292.500 per year in fixed expenses and $4 per unit sold in variable expemes. The $21 unit product cost given above is computed as folows Direct saterials Direct 1labor Variable manufacturing overhead Fixed manufacturing overhead ($265,eee 53,80e units) Absorption costing unit produet cost s 21 Required: t 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 cost income statement and the net operating income on the absorption costing incone statement Complcte this question by entering your answers in the tabs below Reqared 1 Reed 2 Redo the comgany's income statement in the contribution format using variable costing cost of goods 427 400 opereing ncome 1,427 800 228 PM 10/21/2018