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) $750,000 Cost of goods sold (750 x $450) 337,500 412,500 Gross margin 240,000 Selling and administrative expenses 172,500 Net income Additional Information a. Production cost per kayak totals $450, which consists of $350 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 $240,000 in selling and administrative expense consists of $95,000 that is variable and $145,000 that is fixed