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Reconcile the variable costing and absorption costing net operating incomes. (Enter any losses or deductions a value.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes July August 23,000 $ 215,000 Variable costing net operating income (loss) Add (deduct) fixed manufacturing overhead cost deferred in (released from) inventory under absorption costing Absorption costing net operating income (loss) $ $ 218,000 241,000 3,000 Total variable expenses Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expenses Total fixed expenses Net operating income (loss) S $ 253,000 264,000 75,000 166,000 241,000 23,000 $ 437,000 456,000 75,000 166,000 241,000 215,000