Problem $19-2$A $($Algo$)$ Variable costing income statement LO P$2$

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 $\backslash (\backslash$$ $350,000\backslash )$ in annual fixed expenses and $\backslash (\backslash$$ $1\mathrm{.}75\backslash )$ per unit in variable selling and administrative expenses.

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

$```$

Direct materials $$4$ per unit

Direct labor $ $16$ per unit

Variable overhead $ $ per unit

Fixed overhead $($$$700,000/100,000$ units$)$ $ $7$ per unit

$```$

Required:

Prepare an income statement for the company under variable costing.