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 (775 $1,025) $ 794,375 Cost of goods sold (775 $425) 329,375 Gross margin 465,000 Selling and administrative expenses 230,000 Net income $ 235,000 Additional Information Product cost