14 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 points Income Statement (Absorption Costing) Sales (80,000 units X $50 per unit) Cost of goods sold Gross profit Selling and administrative expenses Income $ 4,000,000 2,400,000 1,600,000 560,000 $ 1,040,000 eBook Additional Information Print a. Selling and administrative expenses consist of $400,000 in annual fixed expenses and $2 per unit in variable selling and administrative expenses. b. The company's product cost of $30 per unit consists of the following. References Direct materials Direct labor Variable overhead Fixed overhead ($700,000 / 100,000 units) $ 3 per unit $ 17 per unit $ 3 per unit $ 7 per unit Required: Prepare an income statement for the company under variable costing. Required: Prepare an income statement for the company under variable costing. TREZ Company Income Statement (Variable Costing)