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Trez Company began operations this year. During this first year, the company produced 100,000 units and sold 80,000 units. The absorption costing income statement for this year follows: $3,600,000 Sales (80,000 units 545 per unit) Cost of goods sold beeinning Inventory Cost of goods sanufactured (100,000 units $25 per unit) Cost of goods available for sale Ending inventory (20,000 - $25) Cost of goods sold Gross margin Selling and aoninistrative expenses Net Income 5 2,500,000 2,500,000 500.000 2,000,000 1,600,000 560,000 $1,048,000 Additional Information 4. Selling and administrative expenses consist of $400,000 in annual fixed excesses and $2 per unit in variable selling and administrative expenses b. The company's product cost of 525 per unit is computed as follows Direct materials Direct labor Variable overhead Fixed overhead (5900,000/100,000 units) $2 per unit $10 per unit 53 per unit 5.9 per unit Required: 1. Prepare an income statement for the company under variable costing. 2. Fill in the blanks. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the company under variable costing. TREZ Company Variable Costing Income Statement Netcome 05 Required 2 > Required: 1. Prepare an income statement for the company under variable costing 2. Fill in the blanks Complete this question by entering your answers in the tabs below. Required Required 2 Fill in the blanks The dollar difference in variable costing income and absorption costing income units fixed overhead per unit