units. The abosorption costing income Statement Tor this year Tollows Sales (80,000 units x $50 per unit) Cost of goods sold $4,000,000 Beginning inventory Cost of goods manufactured(100,000 units x $30 per unit) Cost of good available for sale Ending inventory (20,000 x $30) Cost of goods sold 3,000,000 3,000,000 600,000 Gross margin Selling and administrative expenses Net income 2,400,000 1,600,000 530,000 $1,070,000 Additional Information a. Selling and administrative expenses consist of $350,000 in annual fixed expenses and $2.25 per unit in variable selling and administrative expenses b. The company's product cost of $30 per unit is computed as follows per unit er Direct materials Direct labor Variable overhead Fixed overhead ($900,000 / 100,000 $14 unit per unit per 9 unit units) Required 1. Prepare an income statement for the company under variable costing TREZ Compan Variable Costing Income Statement