Exercise 6-4 Variable costing income statement LO P2 Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,000 kayaks and sold 750. at a price of $1,000 each. At this first year-end, the company reported the following income statement information using absorption costing. Sales (758 x $1,080) Cost of goods sold (750 $475) Gross margin Selling and administrative expenses Net income s 750,000 356,250 393,750 220,000 S 173,750 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 $100,000 of fixed production costs allocated to the 1,000 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