Whitney Company has just completed its first year of operations.The company's accountant has prepared an absorption costing income statement for the year as seen below:Sales (35,000 units at $25) $875,000Beginning Inventory 0Cost of Goods Manufactured(35,000 × $12) + $160,000 =580,000Cost of Goods Available 580,000Ending Inventory 0Cost of Goods Sold 580,000Gross Margin 295,000Selling and Administrative Expenses 280,000Net Income $15,000The variable production costs per unit are determined as follows:Direct materials $5Direct labor6Variable production 1Total variable production costs $12The company's fixed production costs are $160,000 per year. The company's selling and administrative expenses consist of $210,000 per year in fixed expenses and $2 per unit in variable expenses.Required: Prepare the company's income statement in the contribution format.