Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,025 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 (775x $1,025) Cost of goods sold (775 $450) $794,375 348,750 445,625 Gross margin Selling and administrative expenses250,000 Net income $195,625 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 $102,500 of fixed production costs allocated to the 1,025 kayaks produced b. The $250,000 in selling and administrative expense consists of $95,000 that is variable and $155,000 that is fixed. Required 1. Prepare an income statement for the current year under variable costing