Exercise 6-4 Variable costing income statement LO P2 Kenzl 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. Sale5 (800 $1,050) Cost of goods sold (800x $450) Gross argin s B40,000 360,000 480,000 200,000 $280,000 Net income Additional Information a. Product cost per kayak totals $450, which consists of $350 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. and administrative expense consists of $75.000 that is variable and $125.000 that is fixed. Required 1. Prepare an income statement for the current year under variable costing. KENZI KAYAKING Variable Costing Income Statement Sales Less: Variable costs