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 (80,000 units x 545 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 (20,000 x $25) Cost of goods sold Gross margin Selling and administrative expenses Net income 2,500,000 2,500,000 500,000 2,000,000 1,6ee, 540,000 $1,060,000 Additional Information a. Selling and administrative expenses consist of $400,000 in annual fixed expenses and $175 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 ($800,000 / 100,000 units) $4 per unit $11 per unit $2 per unit $ 8 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 Prepare an income statement for the company under variable costing. TREZ Company omework Saved Direct Labor Variable overhead Fixed overhead (5800,000 / 100,000 units) $11 per unit $ 2 per unit $ 8 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 Prepare an income statement for the company under variable costing. TREZ Company Variable Costing Income Statement Net Income (loss) L Gross margin Selling and administrative expenses Net income 1,600,000 548.000 $1,000,000 Additional Information a. Selling and administrative expenses consist of $400,000 in annual fixed expenses and $175 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 (5800,000 / 100,000 units) 54 per unit $11 per unit $2 per unit 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. The dollar difference in variable costing Income and absorption costing income units fired overhead per unit