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 * $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 @ 2,500,000 2,500,000 500,000 2,000,000 1,600,000 610,000 $ 990,000 Additional Information a. Selling and administrative expenses consist of $450,000 in annual fixed expenses and $2 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 / 106,080 units) $4 per unit $8 per unit $4 per unit $9 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 Not income (loss) Required 2 > Fill in the blanks The dollar difference in variable costing income and absorption costing income units fixed overhead per unit