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 1,050 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 $425) Gross margin Selling and administrative expenses Net income $ 840,000 340,000 500,000 220,000 $ 280,000 Additional Information .. Product 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 $105,000 of fixed production costs allocated to the 1050 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 2. Fill in the blanks KENZI KAYAKING Variable Costing Income Statement Net income (loss) Fixed costs added to inventory V 1 of 1 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 Fill in the blanks: fixed overhead per unit The dollar difference in variable costing income and absorption costing income