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 $1,050)	$	840,000
Cost of goods sold (800 $475)		380,000
Gross margin		460,000
Selling and administrative expenses		240,000
Net income	$	220,000

Additional Information

Product cost per kayak totals $475, which consists of $375 in variable production cost and $100 in fixed production costthe latter amount is based on $105,000 of fixed production costs allocated to the 1,050 kayaks produced.

The $240,000 in selling and administrative expense consists of $95,000 that is variable and $145,000 that is fixed.

Required

1. Prepare an income statement for the current year under variable costing.

KENZI KAYAKING
Variable Costing Income Statement
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Net income (loss)		?
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Fixed costs added to inventory

Note: Please Solve the problem completely.Thank you,