Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1.050 kayaks and sold 800 at a price of $1.050 each. At this first year-end, the company reported the following income statement information using absorption costing Sales (808 * $1,050) Cost of goods sold (800 x $500) Gross margin Selling and administrative expenses Net income $ 840,000 400,000 44e, eee 230,000 $ 210,000 Additional Information a. Product cost per kayak totals $500, which consists of $400 in variable production cost and $100 in fixed production cost-the latter amount is based on $105,000 of fixed production costs allocated to the 1050 kayaks produced. b. The $230,000 in selling and administrative expense consists of $95.000 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 840,000 Sales Less: Variable costs Variable product costs Variable selling and administrative expenses s 320,000 320,000 Total variable costs Contribution margin Less: Fixed expenses Fixed selling and administrative costs Fixed overhead costs 105,000 Total fixed expenses Net income (loss) 105,000 185,000 S 25,000 250 Net income under absorption costing is higher than net income under variable costing by: Number of units added to(subtracted from) inventory Fixed overhead cost per unit Fixed costs added to inventory S 100 on 25,000 Complete this question by entering your answers in the tabs below. Required: Required 2 Fill in the blanks: units mixed overhead per unit The dollar difference in variable costing income and absorption costing income