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) Variable expenses $3,000,000 Variable manufacturing expense (50,000 units x $28 per unit) Variable selling and admin. expense (50,000 units x $5 per unit) 1,400,000 250,000 1,650,000 1,350,000 Total variable expenses Contribution margin Fixed expenses Fixed overhead Fixed selling and administrative expense Total fixed expenses 320,000 160,000 480,000 $ 870,000 Net income 1. Convert Diaz's variable costing income statement to an absorption costing income statement. DIAZ COMPANY Absorption Costing Income Statement Selling general and administrative expenses Variable manufacturing costs Fixed overhead costs Fixed selling and administrative costs 250,000 160,000 410,000 Total fixed expenses Net income (loss) 820,000 $ 30,000