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 $$25$ per unit consists of the following.

Direct materials $$3$ per unit

Direct labor $$12$ per unit

Variable overhead $$3$ per unit

Fixed overhead units$)$ $$7$ per unit

Required:

Prepare an income statement for the company under variable costing.