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 $3,689, eee Sales (80, eee units X $45 per unit) Cost of goods sold Beginning inventory Cost of goods manufactured (100,000 units * $25 per unit) Cost of good available for sale Ending inventory (20,eee * $25) Cost of goods sold Gross margin Selling and administrative expenses Net income 2,5ee, eee 2,500,eee 500,000 2, eee, eee 1,6ee, eee 560, eee $1,840, eee Additional Information a. Selling and administrative expenses consist of $400,000 in annual fixed expenses and $2 per unit in variable selling and administrative expenses. b. The company's product cost of $25 per unit is computed as follows Direct materials Direct labor Variable overhead Fixed overhead (5800,000 / 100,000 units) $ 4 per unit $11 per unit $2 per unit $8 per unit Required: 1. Prepare an income statement for the company under variable costing Required: 1. Prepare an income statement for the company under variable costing. TREZ Company Variable Costing Income Statement Net income (loss)