Saved Help Save & Exit Submit Kenzi Kayaking, a manufacturer of kayaks, began 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 using absorption costing. $ 896,875 391,875 Sales (825 x $1,075) Cost of goods sold (825 $475) Gross margin Selling and administrative expenses Net income Additional Information a. Product cost per kayak totals $475, which consists of $375 in variable production cost and $100 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 $220,000 in selling and administrative expense consists of $85.000 that is variable and $135.000 that is fixed. Required 1. Prepare an income statement for the current year under variable costing. KENZI KAYAKING Variable Costing Income Statement Saved 1. Prepare an income statement for the current year under variable costing. KENZI KAYAKING Variable Costing Income Statement Net income (loss) J 1 Prey 2 of 5 III Next >