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 (825 $1,075) Cost of goods sold (825 * 5500) Gross margin Selling and administrative expenses Net income $886,875 412,500 474,375 210,000 $ $ 264,375 Additional Information a. Production cost per kayak totals $500, which consists of $400 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 1.075 kayaks produced b. The $210.000 in selling and administrative expense consists of $85,000 that is variable and $125,000 that is fixed 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 (825 $1,075) Cost of goods sold (825 * 5500) Gross margin Selling and administrative expenses Net income $886,875 412,500 474,375 210,000 $ $ 264,375 Additional Information a. Production cost per kayak totals $500, which consists of $400 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 1.075 kayaks produced b. The $210.000 in selling and administrative expense consists of $85,000 that is variable and $125,000 that is fixed