DIAZ COMPANY Income Statement (Absorption Costing) Sales $ 2,184,000 Cost of goods sold Gross profit 2, 184,000 Selling and administrative expenses Income $ 2,184,000Diaz Company reports the following variable costing income statement for its only product. Sales total 42,000 units, but production was 72,000 units. Diaz had no beginning finished goods inventory. DIAZ COMPANY Income Statement (Variable Costing) Sales (42,888 units x $52.88 per unit) $ 2,184,888 Variable expenses Variable cost of goods sold (42,888 units x $27.28 per unit) $ 1,142,488 Variable selling and administrative expenses (42,888 units x $4.28 per unit) 176,488 1,318,888 Contribution margin 865,288 Fixed expenses Fixed overhead 238,488 Fixed selling and administrative expense 115,288 345,688 Income 3 519,599 Prepare an absorption costing income statement