Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,000 kayaks and sold 750 at a price of $1,000 each. At this first year-end, the company reported the following income statement information using absorption costing. $ Sales (750 x $1,000) Cost of goods sold (750 x $425) Gross margin Selling and administrative expenses Net income 750,000 318,750 431,250 220,000 211,250 $ 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 $100,000 of fixed production costs allocated to the 1,000 kayaks produced. b. The $220,000 in selling and administrative expense consists of $95,000 that is variable and $125,000 that is fixed. Required: 1. Prepare an income statement for the current year under variable costing. 2. Fill in the blanks: riepaic an THICONIC Scale TICHIL TUI LIIC CULTEUIL yeai unuci vanadie CUSLILY. KENZI KAYAKING Variable Costing Income Statement Sales Less: Cost of goods sold Gross margin Less: Fixed expenses Net income (loss) Net income (loss) Fixed costs added to inventory Fill in the blanks: The dollar difference in variable costing income and absorption costing income = units fixed overhead per unit. Pequired 1