Kenzi Kayaking, a manufacturer of kayaks, begarf 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 absorption costing 10 points Sales (825 $1,075) Cost of goods sold (825x $425) Gross margin Selling and administrative expenses Net income s886,875 536,250 25e,800 s 286,258 eBook Additsonel Information a. Product cost per kayak totals $425, which consists of $325 in variable production cost and S100 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 $250.000 in selling and administrative expense consists of $95,000 that is variable and $155,000 that is fixed. Required References1 1. Prepare an income statement for the current year under variable costing. KENZI KAYAKING Variable Costing Net income (loss) Fixed costs added to inventory