Diaz Company reports the following variable costing income statement for its only product. Sales total 46,000 units, but production was 76,000 units. Diaz had no beginning finished goods inventory.

Prepare an absorption costing income statement.

\begin{tabular}{|c|c|c|} \hline DIAZCOMPANYIncomeStatement(Variablecosting) & & \\ \hline Sales (46,000 units $56.00 per unit ) & & $2,576,000 \\ \hline Variable expenses & & \\ \hline Variable cost of goods sold (46,000 units $27.60 per unit) & $1,269,600 & \\ \hline Variable selling and administrative expenses (46,000 units $4.60 per unit) & 211,600 & 1,481,200 \\ \hline Contribution margin & & 1,094,800 \\ \hline Fixed expenses & & \\ \hline Fixed overhead & 273,600 & \\ \hline Fixed selling and administrative expense & 136,800 & 410,400 \\ \hline Income & & $684,400 \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline \multicolumn{2}{|c|}{ DIAZ COMPANY } \\ \hline Income Statement (Absorption Costing) \\ \hline \end{tabular}