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 cosung. $ Sales (850 1,108) Cost of goods sold (850 $450) Gross margin Selling and administrative expenses Net income DK 935,00 382, see 552, See 21e, see 342,500 $ Additional Information * a. Product cost per kayak totals $450, which consists of $350 in variable production cost and $100 in fixed production cosi-the latter amount is based on $110,000 of fixed production costs allocated to the 1.100 kayaks produced b. The $210,000 in selling and administrative expense consists of $75,000 that is variable and $135.000 that is fixed Required: 1. Prepare an Income statement for the current year under variable costing. 2. Fill in the blanks: ] ences Required 1 Required 2 Prepare an income statement for the current year under variable costing. KENZI KAYAKING Variable Costing Income Statement Sales $ 935.000 Less: Variable costs Variable product posts Variable selling and administrative expenses S 320.000 75.000 Total variable costs Contribution margin 395.000 Less: Fixed expenses Fixed overhead costs Fixed selling and administrative costs Net income (loss) Fixed costs added to inventory Required 2 >