Variable costing income statement

**Note: I'm guessing the $135,000 is $185,000 instead. Let me know if otherwise. But I don't know how to calculate the "Net Income under absorption costing vs variable costing", "Number of units added to inventory", and "Fixed costs added to inventory"

Exercise 19-4 Variable costing income statement LO P2 Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,050 kayaks and sold 800 at a price of $1.050 each. At this first year-end, the company reported the following income statement information using absorption costing. Sales (800 x $1,050) Cost of goods sold (800 x $500) Gross margin Selling and administrative expenses Net income $ 840,000 400.000 440,000 230.000 $ 210,000 Additional Information a. Product cost per kayak totals $500, which consists of $400 in variable production cost and $100 in fixed production cost-the latter amount is based on $105,000 of fixed production costs allocated to the 1.050 kayaks produced b. The $230,000 in selling and administrative expense consists of $75,000 that is variable and $155.000 that is fixed. Required 1. Prepare an income statement for the current year under variable costing KENZI KAYAKING Variable Costing Income Statement $ 840,000 Sales Less: Variable costs 320,000 75,000 Variable product costs Variable selling and administrative expenses Total variable costs Contribution margin Less: Fixed expenses Fixed overhead costs Fixed selling and administrative costs 395,000 445,000 $ 105,000 155,000 260.000 Total fixed expenses Net income (loss) $ 135,000 Net income under absorption costing is higher than net income under variable costing 260,000 X by Number of units added to subtracted from) inventory $ $ 100 0 Fixed costs added to inventory