Trez Company began operations this year. During this first year, the company produced 100,000 units and sold 80,000 units. T absorption costing income statement for this year follows. $3,6ee, eee Sales (80,000 units X $45 per unit) Cost of goods sold Beginning inventory Cost of goods manufactured (100,000 units * $25 per unit) Cost of goods available for sale Ending inventory (20,000 $25) Cost of goods sold Gross margin Selling and administrative expenses Net income $ @ 2,5ee, eee 2,500, eee See, eee 2,000, eee 1,600, eee 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. 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 (5700,000 / 100,000 units) $3 per unit $12 per unit $3 per unit $7 per unit Required: 1. Prepare an income statement for the company under variable costing 2. Fill in the blanks TREZ Company Variable Costing Income Statement Fixed overhead Net income (loss)