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 $$350,000$ in annual fixed expenses and $$2$ per unit in variable selling and

administrative expenses.

b$.$ The company's product cost of $$20$ per unit consists of the following.Direct labor $ $4$ per unit

Variable overhead $ $3$ per unit

Fixed overhead $($$$900,000/100,000$ units$)$ $ $9$ per unitRequired:

Prepare an income statement for the company under variable costing.