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 (800x$400) Gross profit Selling and administrative expenses Income $840,000 320,000 520,000 240,000 $280,000 Additional Information a. Product cost per kayak under absorption costing totals $400, which consists of $300 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 $240,000 in selling and administrative expenses consists of $85,000 that is variable and $155,000 that is fixed. Prepare an income statement for the current year under variable costing. KENZI Income Statement (Variable Costing) Incone $ 200,000 Additional Information a. Product cost per kayak under absorption costing totals $400, which consists of $300 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 $240,000 in selling and administrative expenses consists of $85,000 that is variable and $155,000 that is fixed. Prepare an income statement for the current year under variable costing. Income KENZI Income Statement (Variable Costing)