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 (80,000 units $45 per unit) $ 3,600,000 Cost of goods sold 2,000,000 Gross profit 1,600,000 Selling and administrative expenses 540,000 Income $ 1,060,000 Additional Information Selling and administrative expenses consist of $400,000 in annual fixed expenses and $1.75 per unit