Kenzi, a manufacturer of kayaks, began operations this year. During this year, the company produced 1,075 kayaks and sold 825 at price of $1,075 each. At year-end, the company reported the following income statement information using absorption costing. Sales (825 * $1,075) Cost of goods sold (825 * $425) Gross profit Selling and administrative expenses Income $ 886,875 350,625 536,250 230,000 $ 306,250 Additional Information a. Product cost per kayak under absorption costing totals $425, which consists of $325 in direct materials, direct labor, and variabl 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 $230,000 in selling and administrative expenses consists of $85,000 that is variable and $145,000 that is fixed. Prepare an income statement for the current year under variable costing. X Answer is not complete. KENZI $ 886,875 Income Statement (Variable Costing) Sales Less: Variable expenses Variable selling and administrative expenses Variable cost of goods sold Contribution margin Less: Fixed expenses Fixed overhead Fixed selling and administrative AYNANSAS Answer is not complete. KENZI Income Statement (Variable Costing) Sales $ 886,875 Less: Variable expenses Variable selling and administrative expenses Variable cost of goods sold Contribution margin Less: Fixed expenses Fixed overhead Fixed selling and administrative expenses Income