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. $4,000,000 Sales (80,000 units * $50 per unit) Cost of goods sold Beginning inventory Cost of goods manufactured (100,000 units * $30 per unit) Cost of goods available for sale Ending inventory (20,000 K $30) Cost of goods sold Gross margin selling and administrative expenses Net income 0 3,000,000 3,000,000 600,000 2,400,000 1,600,000 530,000 $1,070,000 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 $30 per unit is computed as follows. Direct materials Direct labor Variable overhead Fixed overhead ($900,000 / 100,000 units) $5 per unit 514 per unit $2 per unit $ 9 per unit 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 Sales $ 4,000,000 Less: Variable costs Direct materials $ 400,000 Direct labor Variable overhead 160,000 Variable selling and administrative expenses 560,000 Total variable costs Contribution margin Loss: Fixed expenses Fixed overhead Fixed selling and administrative costs Net income (loss) Required 2 > 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 units fixed overhead per unit The dollar difference in variable costing income and absorption costing income