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 Conting) Salen (80,000 units * 545 per unit) $ 3,600,000 Cont of goods sold 2,000,000 Gross profit 1,600,000 Selling and administrative expenses 510,000 Income $ 1,090,000 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 $25 per unit consists of the following Direct materials Direct labor Variable overhead Fixed overhead ($700,000 / 100,000 units) $ 3 per unit $ 12 per unit $ 3 per unit $ 7 per unit Required: Prepare an income statement for the company under variable costing. Required: Prepare an income statement for the company under variable costing. TREZ Company Income Statement (Variable Costing)