l-{enzi Kayaking. a manufacturer of kayaks. began operations this year. During this first year. the company produced 1.0?5 kayaks and sold 825 at a price of $1.0?5 each. At this first year-end. the company reported the following income statement information using absorption costing. Sales (325 2: sLo'rs) 51. 335,3?5 Cost of goods sold [325 x $425] 356,625 Gross margin 536,250 Selling and administrative expenses 230,000 Net income 5 306,250 Additional Information a. Product cost per kayak totals $425. which consists of $325 in variable production cost and $100 in fixed production costthe latter amount is based on $101500 offiked production costs allocated to the 1.075 kayaks produced. h. The $230,000 in selling and administrative expense consists of $95,000 that is variable and $135000 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 line tabs below. Required 1 Required 2 Prepare an income statement for the current year under variable costing. KENZI KAYAKING Variable Costing Income Statement Contribution margin Gross margin Net income Net loss Sales Selling general and administrative expenses Net income (loss)Required 1 Required 2 Fill in the blanks: The dollar difference in variable costing income and absorption costing income = units X fixed overhead per unit