Problem 19-2A Variable costing income statement and conversion to absorption costing income LO P2, P3 Trez Company began operations this year. During this first year the company produced 100.000 units and sold 80,000 units. The absorption costing income statement for this year follows Sales (0,000 uniES840 per unit Cost of goods sold 3,200, 000 Beginning inventory Cost of goods manufactured (100,000 units $20 per unie Cost of good avallable for sale 2,000 00 Ending inventory 120,000$20 Cost of goods sold Gross margin selling and aaistrative expenses et Lncome 600.000 a. Selling and administrative expenses consist of $400,000 in annual fixed expenses and $2 25 per unit in variable seling and administrative expenses b. The company's product cost of $20 per unit is computed as folliows Variable overhead fund overhead K$700,000 / 100,000 units 7 pee unit Prev 70, 7 lli Next 8 command option