Diaz Company reports the following variable costing income statement for its single product. This company's sales totaled 50,000 units, but its production was 80,000 units. It had no beginning finished goods inventory for the current period. Diaz COMPANY Income Statement (Variable Costing) Sales (50,000 units x $60 per unit) $3,000,000 Variable expenses Variable manufacturing expense (50,000 units X $28 per unit) 1,400,000 Variable selling and admin. expense (50,000 units X $5 per unit) 250,00 Total variable expenses 1,650,000 Contribution margin 1,350,000 Fixed expenses Fixed overhead Fixed selling and administrative expense 320,000 160.ece Total fixed expenses 480,000 Net income $ 870, eee 1. Convert Diaz's variable costing Income statement to an absorption costing income statement 1. Convert Diaz's variable costing income statement to an absorption costing income statement. DIAZ COMPANY Absorption Costing Income Statement Sales Less: Variable costs Fixed overhead costs Gross margin Selling general and administrative expenses Net income (loss)