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. $3,600,000 Sales (89,000 units * $45 per unit) Cost of goods sold Beginning inventory Cost of goods manufactured (100,000 units X $25 per unit) Cost of goods available for sale Ending inventory (20,800 x $25) Cost of goods sold Gross margin Selling and administrative expenses Net Income $ 0 2.500.000 2,500,000 500.000 2.000,00 1,600,000 630,000 $970,000 Additional Information a. Selling and administrative expenses consist of $450,000 in annual fixed expenses and $2.25 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 ($100,000 / 100,000 units) 54 per unit $0 por unit 53 per unit 50 por unit Additional Information a. Selling and administrative expenses consist of $450,000 in annual fixed expenses and $2.25 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 ($900,000 / 100,000 units) 54 per unit $9 per unit $3 per unit 59 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 Required 1 Required 2 Prepare an income statement for the company under variable costing. TREZ Company Variable Costing Income Statement Net Income (los) 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. The dollar difference in variable conting income and absorption costing income units fixed overhead per unit (Required 1