Kenzi, a manufacturer of kayaks, began operations this year During this year the company produced 1025 kayaks and sold 775 at a price of $1025 each. At yearend, the company reported the following income statement information using absorption costing. Sales (775 x $1,925) 5 ?94.375 Cost of: goods sold (775 x $450) 3481750 Gross profit 445J625 Selling and administrative expenses 2291960 Income $ 2255625 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 $102500 of fixed overhead per year divided by 1,025 kayaks produced. b. The $220,000 in selling and administrative expenses consists of $75000 that is variable and $145,000 that is fixed. Prepare an income statement for the current year under variable costing. 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 xed overhead cost. Fixed overhead of $100 per unit is based on $102,500 of xed overhead per year divided by 1,025 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