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: Whitman Company Income Statement Sales (42,eee units x $43.12 per unit) Cost of goods sold (42,000 units x $23 per unit) Gross margin Selling and administrative expenses Net operating income $1,810,200 966,000 844,200 483,000 $ 361,200 The company's selling and administrative expenses consist of $315,000 per year in fixed expenses and $4 per unit sold in variable expenses. The $23 unit product cost given above is computed as follows: $ 11 4 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($255,800 51,000 units) Absorption costing unit product cost $ 23 T 6 ICA #3 Saved Help Save & Exi Chech Required 1 Required 2 Redo the company's income statement in the contribution format using variable costing. 39:32 Whitman Company Variable Costing Income Statement Sales Variable expenses Variable cost of goods sold Variable selling and administrative $ 1,810,200 1,810,200 nces Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expense C Net operating income $ 1,810,200 to search Required 1 Required 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. (Enter any losses or deductions as a negative value.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income Absorption costing net operating income