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\mathrm{.}25$ per unit in varlable selling and

administrative expenses.

b$.$ The company's product cost of $$30$ per unit consists of the following.

Direct materials

$$5$ per unit

Direct labor

Variable overhead

$$14$ per unit

Fixed overhead $($ $$900,\frac{000}{100},000$ units$)$

$$2$ per unit

$$9$ per unit

Required:

Prepare an income statement for the company under varlable costing.