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, een Sales (88,000 units $40 per unit) x Cost of goods sold Beginning inventory Cost of goods manufactured (100,000 units X $20 per unit) Cost of good available for sale Ending inventory (20,000 $20) Cost of goods sold Gross margin Selling and administrative expenses Net income 2,000,000 2,000,000 400,000 1,600,000 1,600,000 560,000 $1,040,000 sces 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. Direct materials Direct labor Variable overhead Fixed overhead ($600,000 / 100,000 units) 54 per unit $7 per unit $3. per uit 56 per unit Required: 1. Prepare an income statement for the company under variable costing TREZ Company Variable Costing Income Statement Additional Information 9. Selling and administrative expenses consist of $400,000 in annual fixed expenses and $2 per unit in variable seling 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 ($600,000 / 100,000 units) $4 per unit $7 per unit 53 per unit $6 per unit Required: 1. Prepare an income statement for the company under variable costing, TREZ Company Variable Costing Income Statement Not income doss)