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 $1075 each. At this first year end, the company reported the following income statement Information using absorption costing Sales (825 $1,075) Cost of goods sold (8255425) Gross margin Selling and administrative expenses Not income 836, as 350.625 536,250 220 Additional Information a. Product cost per kayak totals $425, which consists of $325 in variable production cost and $100 in fixed production cost-the latter amount is based on $107.500 of fixed production costs allocated to the 1075 kayaks produced b. The $220.000 in selling and administrative expense consists of $85,000 that is variable and $175.000 that is food, 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 Prepare an income statement for the current year under variable costing. KENZI KAYAKING Variable Coating Income Statement Net income (loss) Fixed costs added to inventory Required Required 2 Fill in the blanks: The car in conting income and option costing income units med overhead perunt