Exercise 6-4 Variable costing income statement LO P2 Kenzi Kayaking. a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,050 kayaks and sold 800 at a price of $1,050 each. At this first year-end, the company reported the following income statement information using absorption costing Sales (800 $1,e50) Cos't of goods sold (800 $500) Gross margin Selling and administrative expenses Net income 848,80e 400,880 440,800 240,080 % 200,000 Additional Information kayak totals $500, which consists of $400 in variable production cost and $100 in fixed production cost-the latter amount is based on $105,000 of fixed production costs allocated to the 1,050 kayaks produced. b. The $240,000 n seingnstrative expense consists of$s95.000 that is variable and si5.00that is fied