Exercise 6-12 (Algo) Variable Costing Income Statement; Reconciliation (L06-2, L06-3] 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 (41,000 units X $42.60 per unit) $ 1,746,600 Cont of goods wold (41,000 units $24 per unit) 984 000 Gross margin 762,600 selling and administrative expenson 512,500 Not operating Income $ 250,100 The company's selling and administrative expenses consist of $307,500 per year in fixed expenses and $5 per unit sold in variable expenses. The $24 unit product cost given above is computed as follows: Direct materiala Direct labor Variable manufacturing overhead Fixed manufacturing overhead (6318,000 53,000 units) Absorption coating unit product cost $.24 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. 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 Oporating Incomes Variable costing net operating income Absorption costing net operating income