Kenzi Kayaking, a manufacturer of kayaks, began operations this year During this first year, the company produced 1.075 kayaks and sold 825 at a price of $1,075 each At this first year-end, the company reported the following income statement information using absorption costing Sales (625 $1,075) Cost of goods sold (625 $450) Gross margin Selling and administrative expenses Net Income 5 886,875 321,250 515,625 250.000 $265.625 Additional Information a. Product cost per kayak totals $450, which consists of $350 in variable production cost and 5100 in fixed production cost-the latter amount is based on $107.500 of fixed production costs allocated to the 1075 kayaks produced b. The $250,000 in selling and administrative expense consists of $105,000 that is variable and $145,000 that is fixed. Required: 1. Prepare an income statement for the current year under variable costing, 2. Fill in the blanks Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the current year under variable costing KENZI KAYAKING Variable Costing Income Statement Required: 1. Prepare an income statement for the current year under variable costing 2. Fill in the blanks Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the current year under variable costing. KENZI KAYAKING Variable Costing Income Statement Net Income (loss) Fixed costs added to inventory Required Required 2 > 2 sold 825 at a price of $1.075 each At this first year-end, the company reported the following income statement information using absorption costing 50 ponts Sales (82551,075) Cost of goods sold ($25 5456) Gross margin Selling and adeinistrative expenses Het con $.$86,075 375 250 515,625 250.000 5 265,625 Additional Information s. Product cost per kayak totals $450, which consists of $350 in variable production cost and $100 in foved production cost-the latter amount is based on $107500 of fixed production costs allocated to the 1075 kayaks produced b. The $250,000 in selling and administrative expense consists of S105,000 that is variable and $145,000 that is fixed Hint References Required: 1. Prepare an income statement for the current year under variable costing 2. Fill in the blanks Complete this question by entering your answers in the tabs below. Required: Required 2 Fill in the blanks fixed overhead per unit The dotar diference in variable coming income and absorption conting Income