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Trez Company began operations this year. During this first year, the company produced 100,000 units and sold 80,000 units. The absorption costing income statement for this year follows. Sales (86,666 units x $56 per unit) $4,666,666 Cost of goods sold Beginning inventory $ 6 Cost of goods manufactured (166,666 units x $36 per unit) 3,666,666 Cost of goods available for sale 3,666,666 Ending inventory (26,666 x $36) 566,666 Cost of goods sold 2,466,666 Gross margin 1,566,666 Selling and administrative expenses 616,666 Net income $ 996,666 | Additional Information 3. Selling and administrative expenses consist of $450,000 in annual xed expenses and $2 per unit in variable selling and administrative expenses. b. The company's product cost of $30 per unit is computed as follows. Direct materials $ 5 per unit Direct labor $16 per unit Variable overhead $ 3 per unit Fixed overhead ($666,666 / 166,666 units) $ 6 per unit Required: 1. Prepare an income statement for the company under variable costing. 2. Fill in the blanks. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the company under variable costing. Net income {loss} Required 2 ) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Fill in the blanks. The dollar difference in variable costing income and absorption costing income = units fixed overhead per unit