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 $1025 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 * $475) Gross margin Selling and administrative expenses Net income $ 794,375 368,125 426,250 220,000 $ 206,250 Additional Information a. Product cost per kayak totals $475, which consists of $375 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 1,025 kayaks produced. b. The $220,000 in selling and administrative expense consists of $85,000 that is variable and $135,000 that is fixed. Required: 1. Prepare an income statement for the current year under variable costing 2. Fill in the blanks: Required 1 Required 2 Prepare an income statement for the current year under variable costing. KENZI KAYAKING Variable Costing Income Statement Sales $ 794,375 > Less: Variable costs Variable product costs Variable selling and administrative expenses 290,625 290,625 Total variable costs Contribution margin Less: Fixed expenses Fixed overhead costs Fixed selling and administrative costs OO Net income (loss) Fixed costs added to inventory Required Required 2 > Required 1 Required 2 Fil in the blanks: units fixed overhead per unit The dollar difference in variable costing income and absorption costing income (Required