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Diaz Company reports the following variable costing income statement for its only product Sales total 59,000 units, but production was 89,000 units. Diaz had no beginning finished goods inventory. DIAZ COMPANY Income Statement (Variable Costing) Sales (59,000 units x $69.00 per unit) Variable expenses Variable cost of goods sold (59,000 units x $28.90 per unit) Variable selling and administrative expenses (59,000 units x $5.90 per unit) Contribution margin Fixed expenses Fixed overhead Fixed selling and administrative expense Income $ 4,071,000 $ 1,705,100 348, 100 2,053,200 2,017,800 436,100 218,050 Prepare an absorption costing income statement. 654,150 $ 1,363,650 DIAZ COMPANY Income Statement (Absorption Costing) Sales $ 4,071,000 Cost of goods sold Gross profit Selling and administrative expenses 4,071,000 Income $ 4,071,000