14 Required: Prepare an income statement for the company under variable costing. X Answer is complete but not entirely correct. 3 points TREZ Company Income Statement (Variable Costing) S Sales 3,600,000 Less: Variable expenses V Variable cost of goods sold $2,000,000 X Variable selling and administrative expenses 240,000 X Total variable costs 2,240,000 Contribution margin 3,360,000 X Less: Fixed expenses Fixed selling and administrative costs 450,000 Fixed overhead V 800,000 Total fixed expenses 1,250,000 $ Loss X 2,110,000 X14 Trez Company began operations this year. During this year, the company produced 100,000 units and sold 80,000 units. The absorption costing income statement for this year follows. 3 Income Statement (Absorption Costing) points Sales (80,000 units x $45 per unit) $ 3, 600, 000 Cost of goods sold 2, 000, 000 Gross profit 1, 600, 000 Selling and administrative expenses 590, 000 eBook Income $ 1, 010, 060 Print Additional Information References a. Selling and administrative expenses consist of $450,000 in annual fixed expenses and $1.75 per unit in variable selling and administrative expenses. b. The company's product cost of $25 per unit consists of the following. Direct materials $ 4 per unit Direct labor $ 10 per unit Variable overhead $ 3 per unit Fixed overhead ($800,000 / 100,000 units) $ 8 per unit Required: Prepare an income statement for the company under variable costing