Please help with Required 2

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 costing Sales (850 * $1,100) Cost of goods sold (850 * $400) Gross margin Selling and administrative expenses Net income $ 935,000 340,000 595,000 230,000 $365,000 Additional Information a. Product cost per kayak totals $400, which consists of $300 in variable production cost and $100 in fixed production cost-the latter amount is based on $110,000 of fixed production costs allocated to the 1,100 kayaks produced. b. The $230,000 in selling and administrative expense consists of $85,000 that is variable and $145,000 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. $ 935,000 KENZI KAYAKING Variable Costing Income Statement Sales Less: Variable costs Variable product costs $ Variable selling and administrative expenses 255,000 85,000 340,000 595,000 Total variable costs Contribution margin Less: Fixed expenses Fixed overhead costs Fixed selling and administrative costs 110,000 145,000 Total fixed expenses Net income (loss) 255,000 $ 340,000 $ 25,000 250 Net income 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 $ 100 25,000 $ Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Fill in the blanks: units The dollar difference in variable costing income and absorption costing Income Fixed overhead per N unit