Sales (65 tons at $21,580 per ton) Cost of goods sold (65 tons at $16,se0 per ton) Gross margin Selling and administrative expenses Net loss $1,397,see 072.500 325,000 345 150 s (28,1se) its product cost information follows and consists mainly of fixed cost because of its automated production process requiring expensive Varlable direct labor and material costs per ton Fixed cost per ton ($740, e0+ 65 tons) Total product cost per ton s 5,115 11,385 16,500 Selling and administrative expenses consist of variable selling and administrative expenses of $310 per ton and fixed selling and administrative expenses of $325.000 per year. The company's president is concerned about the adverse reaction from its creditors and shareholders if the projected net loss is reported. The operations manager mentions that since the company has large storage capacity, it can report a net income by keeping its production at the usual 100-ton level even though it expects to sell only 65 tons. The president was puzzled by the suggestion that the company can report income by producing more without increasing sales Required: 1. Can the company report a net income by increasing production to 100 tons and storing the excess production in inventory? Complete the following income statement (using absorption costing) based on production of 100 tons and sales of 65 tons (Round your enswers to the neorest whole doller.)