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, $3,200,000 Sales (80,000 units * $40 per unit) Cost of goods sold Beginning inventory Cost of goods manufactured (100,eee units * $20 per unit) Cost of goods available for sale Ending inventory (20,000 $20) Cost of goods sold Gross margin Selling and administrative expenses Net income $ 2,000,000 2,688,888 400,000 1,600,000 1,609, eee 510,000 $1,898,888 Additional Information a. Selling and administrative expenses consist of $350,000 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. Direct materials Direct labor Variable overhead Fixed overhead ($780,800 / 100,000 units) $3 per unit $8 per unit $2 per unit $7 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 tu Required: 1. Prepare an income statement for the company under variable costing. 2. Fill in the blanks 12 Complete this question by entering your answers in the tabs below. 4.54 points Required 1 Required 2 Prepare an income statement for the company under variable costing, eBook TREZ Company Variable Costing Income Statement Net Income (loss) Required 1 Required 2 > Additional Information a. Selling and administrative expenses consist of $350,000 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. Direct materials Direct labor Variable overhead Fixed overhead ($700,000 / 190,000 units) $3 per unit $8 per unit $2 per unit $7 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 Fill in the blanks. units The dollar difference in variable costing income and absorption costing income = X fixed overhead per unit.