Kenzi, a manufacturer of kayaks, began operations this year. During this year, the company produced 1,075 kayaks and sold 825 at a price of $1,075 each. At year-end, the company reported the following income statement information using absorption costing. Sales (825 $1,075) $ 886,875 Cost of goods sold (825 $450) 371,250 Gross profit 515,625 Selling and administrative expenses 220,000 Income $ 295,625 Additional Information a. Product cost per kayak under absorption costing totals $450, which consists of $350 in direct materials, direct labor, and variable overhead costs and $100 in fixed overhead cost. Fixed overhead of $100 per unit is based on $107,500 of fixed overhead per year divided by 1,075 kayaks produced. b. The $220,000 in selling and administrative expenses consists of $95,000 that is variable and $125,000 that is fixed. Prepare an income statement for the current year under variable costing.