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 $1,050) Cost of goods sold (800 $425) Gross profit Selling and administrative expenses Income Additional Information S 840,000 340,000 500,000 250,000 $ 250,000 a. Product cost per kayak under absorption costing totals $425, which consists of $325 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 $250,000 in selling and administrative expenses consists of $105,000 that is variable and $145,000 that is fixed Prepare an income statement for the current year under variable costing. KENZI Income Statement (Variable Costing)