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. $3,500,000 Sales (80,000 units K $45 per unit) Coat of goods sold Beginning inventory Cont of yooda manufactured (100,000 units 025 per unit) Coat of goods available for sale Ending Inventory (20,000 $25) Cost of yoods sold Gross margin Belling and administrative expenses Net Income 2,500,000 2,500,000 500,000 2,000,000 1,600,000 530.000 $1,070,000 1 Additional Information a. Selling and administrative expenses consist of $350,000 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. Direet material Direct labox Variable overhed Fixed overhead (1000.000 100.000 unita 0.4 per unit 511 per unit $2 per unit per unit Required: 1. Prepare an income statement for the company under variable costing 2. Fill in the blanks