Ch 06 Ex 6-4 Saved Help Save & Exit Submit Check my work Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,075 kayaks and sold 825 at a price of $1,075 each. At this first year-end, the company reported the following income statement information using absorption costing. points $ eBook Sales (825 * $1,075) Cost of goods sold (825 * $400) Gross margin Selling and administrative expenses Net income 886,875 330,000 556,875 230,000 326,875 Hint $ Ask Additional Information Print References a. Product cost per kayak totals $400, which consists of $300 in variable production cost and $100 in fixed production cost-the latter amount is based on $107,500 of fixed production costs allocated to the 1,075 kayaks produced. b. The $230,000 in selling and administrative expense consists of $95,000 that is variable and $135,000 that is fixed. Required: 1. Prepare an income statement for the current year under variable costing. 2. Fill in the blanks: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the current year under variable costing. Required 1 Required 2 Prepare an income statement for the current year under variable costing. KENZI KAYAKING Variable Costing Income Statement points eBook Hint Ask Print References Net income (loss) Additional Information a. Product cost per kayak totals $400, which consists of $300 in variable production cost and $100 in fixed production cost-the latter amount is based on $107,500 of fixed production costs allocated to the 1,075 kayaks produced. b. The $230,000 in selling and administrative expense consists of $95.000 that is variable and $135,000 that is fixed. points eBook Required: 1. Prepare an income statement for the current year under variable costing. 2. Fill in the blanks: Hint Ask Complete this question by entering your answers in the tabs below. Print References Required 1 Required 2 Fill in the blanks: The dollar difference in variable costing income and absorption costing income = units fixed overhead per unit.