Exercise 06-4 Variable costing income statement LO P2 Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,075 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. Sales (825 x $1,075) Cost of goods sold (825 * $475) Gross margin Selling and administrative expenses Net income $ 886,875 391,875 495,000 210,000 $ 285,000 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 $210,000 in selling and administrative expense consists of $85,000 that is variable and $125,000 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 the tabs below. Required 1 Required 2 Prepare an income statement for the current year under variable costing. KENZI KAYAKING Variable Costing Income Statement Net income (loss) Fixed costs added to inventory Required 2 > Required: m. Prepare an income statement for the current year under variable costing, 2. Fill in the blanks: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Fill in the blanks: The dollor difference in variable costing income and absorption costing income - units fixed overhead per unit