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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 (80,880 units $45 per unit) Cost of goods sold 53,600,0ee Beginning inventory Cost of goods manufactured (100,000 units x $25 per unit) Cost of good available for sale Ending inventory (28,000 x $25) Cost of goods sold 2.5002000 2, 500,00ee see,00e Gross margin Selling and administrative expensers Net income 2,000,00e 1,689,eee 580,889 51,820,0ee Additional Information a. Selling and administrative expenses consist of $400.000 in annual fixed expenses and $2.25 per unit in variable selling and administrative expenses b. The company's product cost of $25 per unit is computed as follows 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 (80,880 units $45 per unit) Cost of goods sold 53,600,0ee Beginning inventory Cost of goods manufactured (100,000 units x $25 per unit) Cost of good available for sale Ending inventory (28,000 x $25) Cost of goods sold 2.5002000 2, 500,00ee see,00e Gross margin Selling and administrative expensers Net income 2,000,00e 1,689,eee 580,889 51,820,0ee Additional Information a. Selling and administrative expenses consist of $400.000 in annual fixed expenses and $2.25 per unit in variable selling and administrative expenses b. The company's product cost of $25 per unit is computed as follows

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