Kenzi, a manufacturer of kayaks, began operations this year. During this year, the company produced $1,050$ kayaks and sold $800$ at a price of $$1,050$ each. At year$-$end, the company reported the following income statement information using absorption costing.

Sales $(800\backslash$times $$1,050)$ $ $840,000$

Cost of goods sold $(800\backslash$times $$475)380,000$

Gross profit $460,000$

Selling and administrative expenses $220,000$

Income $ $240,000$

Additional Information

a$.$ Product cost per kayak under absorption costing totals $$475,$ which consists of $$375$ in direct materials, direct labor, and variable overhead costs and $$100$ in fixed overhead cost. Fixed overhead of $$100$ per unit is based on $$105,000$ of fixed overhead per year divided by $1,050$ kayaks produced.

b$.$ The $$220,000$ in selling and administrative expenses consists of $$75,000$ that is variable and $$145,000$ that is fixed.

Prepare an income statement for the current year under variable costing.