Kenzi, a manufacturer of kayaks, began operations this year. During this year, the company produced 1,000 kayaks and sold 750 at a price of $1,000 each. At year-end, the company reported the following income statement information using absorption costing.

Sales (750 $1,000)	$ 750,000
Cost of goods sold (750 $425)	318,750
Gross profit	431,250
Selling and administrative expenses	220,000
Income	$ 211,250

Additional Information

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 $100,000 of fixed overhead per year divided by 1,000 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.