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 (800 x $1,050) Cost of goods sold (800x $475) Gross margin Selling and administrative expenses Net income $ 840,000 380,000 460,000 210,000 $ 250,000 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 $105,000 of fixed production costs allocated to the 1,050 kayaks produced. b. The $210,000 in selling and administrative expense consists of $75,000 that is variable and $135,000 that is fixed. Required 1. Prepare an income statement for the current year under variable costing