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. Income Statement (Absorption Costing) Sales (80,030 units * $40 per unit) $ 3, 280, 303 cost of goods sold 1, 683, 303 Gross profit 1, 680, 809 selling and administrative expenses 580, 063 Income $ 1, 820, 030 Additional Information a. 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. Direct materials $ 4 per unit Direct labor $ 6 per unit Variable overhead $ 3 per unit Fixed overhead ($709, 030 / 180,090 units) $ 7 per unit Required: Prepare an Income statement for the company under variable costing. TREZ Company Income Statement (Variable Costing)