need help in founding net income under absorption costing is higher than net income under various costing by

Kenzi Kayaking, a manufacturer of kayaks, began operations this year During this first year, the company produced 1,025 kayaks and sold 775 at a price of $1,025 each. At this first year-end, the company reported the following income statement information using absorption costing Sales (775% $1,025) Cost of goods sold 775 $425) $ 794,375 329,375 Gross margin Selling and administrative expenses 465,000 230,000 Net income $ 235,000 Additional Information a. Production cost per kayak totals $425, which consists of $325 in variable production cost and $100 in fixed production cost-the latter amount is based on $102,500 of fixed production costs allocated to the 1,025 kayaks produced b. The $230,000 in selling and administrative expense consists of $95,000 that is vanable and $135,000 that is fixed Required 1. Prepare an income statement for the current year under variable costing Answer is not complete KENZI KAYAKING Variable Costing Income Statement Sales 794 375 Less: Variable costs Variable production costs Variable selling and administrative expenses 251 875 95,000 346,875 447,500 Contribution margin Less: Fixed expenses 102 500 135,000 Fixed overhead costs Fixed selling and administrative costs Total fixed expenses Net incorme (loss) 237 500 210,000 O Net incorne under absorption costing is higher than net income under variable costing by Number of units added to(subtracted from) inventory Fixed overhead cost per unit Fixed costs added to inventory ing235000 250 100 $ 25,000