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 $1,100 each. At year-end, the company reported the following income statement information using absorption costing. Sales (800 x $1,100) Cost of goods sold (800 x $500) Gross profit Selling and administrative expenses Income $ 880,000 400,000 480,000 230,000 $ 250,000 Additional Information a. Product cost per kayak under absorption costing totals $500, which consists of $400 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 $230,000 in selling and administrative expenses consists of $75,000 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) 0 0 Income