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 0. Selling and administrative expenses consist of $400.000 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. \begin{tabular}{l} TREZ Company \\ \hline \multicolumn{1}{|c|}{ Income Statement (Variable Costing) } \\ \hline Sales \\ \hline Less: Variable expenses \\ \hline Variable cost of goods sold \\ \hline Variable selling and administrative expenses \\ \hline Contribution margin \\ \hline Less: Fixed expenses \\ \hline Fixed overhead \\ \hline Fixed selling and administrative costs \\ \hline \end{tabular}