QS 19-11 Converting variable costing income to absorption costing LO P3 Diaz Company reports the following variable costing income statement for its single product. This company's sales totaled 58,000 units, but its production was 88,000 units. It had no beginning finished goods inventory for the current period. $ 3,944,000 Diaz COMPANY Income Statement (Variable Costing) Sales (58,000 units * $68.00 per unit) Variable expenses Variable manufacturing expense (58,000 units x $28.80 per unit) Variable selling and admin. expense (58,000 units X $5.80 per unit) Total variable expenses Contribution margin Fixed expenses Fixed overhead Fixed selling and administrative expense Total fixed expenses Net income 1,670,400 336,400 2,006,800 1,937,200 422,400 211, 200 633600 $1,303,600 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 Net income (loss)