Trez Company began operations this year. During this year, the company produced 100,000 units and sold 80,000 units. The absorption costing income statement for this year follows. 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. b. The company's product cost of $20 per unit consists of the following. Required: Prepare an income statement for the company under variable costing. b. The company's product cost of $20 per unit consists of the following. Required: Prepare an income statement for the company under variable costing. Exercise 19-17 (Algo) Analyzing a special offer for a service company LO P3 Grand Garden is a hotel with 220 suites. Its regular suite price is $210 per night per suite. The hotel's total cost per night is $150 per suite and consists of the following. The hotel manager receives an offer to hold the local Bikers' Club meeting at the hotel in March, which is the hotel's slow season with a low occupancy rate per night. The Bikers' Club would reserve 200 suites for one night if the hotel accepts a price of $118 per night. (a) What is the contribution margin from this special offer? (b) Should the Bikers' Club offer be accepted or rejected? Huds incorporated reports the information below on its product. The company uses absorption costing and has a target markup of 40% of absorption cost per unit. Compute the target selling price per unit under absorption costing