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. 33.200.000 Sales (10,000 units 346 permit) Cost of goods sold Beginning entory Cont of goods manufactured 100,000 wita $20 per unit) Cost of good available for sale Ending inventory (20,000. 320) Cost of goods sold Gross margin Selling and administrative expenses Net Inc 0 2.000.000 2.000,006 400.000 1.800,000 1,600,000 560,000 51,040.000 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 $20 per unit is computed as follows. Dirett sterial Dues on Variable cas Tikes bead 06.000 100.000 a 34 per is se per il 3. Per 1 perutis Direct materials Direct labor Variable overhead Fixed overhead (SB00, 00D / 100,000 units) $ 4 per uit $6 per unit $2 per mit $8 per unit Required: 1. Prepare an Income statement for the company under variable costing. $ 3.200,000 TREZ Company Variable Costing Income Statement Sales Less: Variable costs Variable overhead Variable selling and administrative expenses Direct labor Direct materials 320.000 320.000 Total variable costs Contribution margin Less: Fixed expenses Foxed overhead Foced selling and administrative costs Net income (loss)