Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,100 kayaks and sold 850 at a price of $1,100 each. At this first year-end, the company reported the following income statement information using absorption costing. $ Sales (850 x $1,100) Cost of goods sold (850 - $425) Gross margin Selling and administrative expenses Net income 935,000 361,250 573,750 220,000 353, 750 $ 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 $110,000 of fixed production costs allocated to the 1,100 kayaks produced. b. The $220,000 in selling and administrative expense consists of $75,000 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 Net income (loss) Required Required 2 >