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Diaz Company reports the following variable costing income statement for its single product. This companys sales totaled 59,000 units, but its production was 89,000 units. It had no beginning finished goods inventory for the current period.

Diaz COMPANY Income Statement (Variable Costing) $ 4,071.000 Sales (59,000 units x $69.00 per unit) Variable expenses Variable manufacturing expense (59,000 units $28.90 per unit) 1,705,100 $5.90 per unit) Variable selling and admin. expense (59,000 units Total variable expenses Contribution margin 348,100 2,053,200 2,017,800 436,100 Fixed expenses Fixed overhead Fixed selling and administrative expense Total fixed expenses 218,050 654.150 $1,363,650 Net income 1. Convert Diaz's variable costing income statement to an absorption costing income sta DIAZ COMPANY Costing Income Statement Sales $ 4,071,000 Less: Cost of goods sold Variable manufacturing costs Fixed overhead costs Cost of goods sold Gross margin Selling general and administrative expenses Fixed selling and administrative costs Variable selling and administrative expenses Net income (loss)