Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,000 kayaks and sold 750 at a price of $1,000 each. At this first year-end, the company reported the following income statement information using absorption costing. Sales (750 x $1,000) Cost of goods sold (750 x $450) Gross margin Selling and administrative expenses Net income $ 750,000 337,500 412,500 250,000 $ 162,500 Additional Information a. Product cost per kayak totals $450, which consists of $350 in variable production cost and $100 in fixed production costthe latter amount is based on $100,000 of fixed production costs allocated to the 1,000 kayaks produced. b. The $250,000 in selling and administrative expense consists of $95,000 that is variable and $155,000 that is fixed. Required: 1. Prepare an income statement for the current year under variable costing. 2. Fill in the blanks: Prepare an income statement for the current year under variable costing. KENZI KAYAKING Variable Costing Income Statement Sales Net income (loss) Fixed costs added to inventory Required 1 Required 2 >