Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1025 kayaks and sold 775 at a price of $1,025 each. At this first year-end, the company reported the following income statement information using absorption costing Sales (775 * $1,025) Cost of goods sold (775 X $425) Gross margin Selling and administrative expenses Net income 5 794,375 329,375 465,000 240,000 $ 225,000 Additional Information a. Product cost per kayak totals $425, which consists of $325 in variable production cost and $100 in fixed production cost-the latter amount is based on $102.500 of fixed production costs allocated to the 1025 kayaks produced b. The $240,000 in selling and administrative expense consists of 95.000 that is variable and $145,000 that is fixed. Required: 1. Prepare an income statement for the current year under variable costing 2. Fill in the blanks: Required: 1. Prepare an income statement for the current year under variable costing. 2. Fill in the blanks Complete this question by entering your answers in the tabs below. ook Required 1 Required 2 Prepare an income statement for the current year under variable costing. KENZI KAYAKING Fint Variable Costing Income Statement Contribution margin ences Net income (loss) Fixed costs added to inventory Required 2 > Required 1 Required 2 Fill in the blanks units The dollar difference in variable costing income and absorption costing income fixed overhead per unit