Exercise 6-4 Variable costing income statement LO P2 Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first y sold 825. at a price of $1,075 each. At this first year-end, the company reported the absorption costing e company produced 1,075 kayaks and g income statement information using Sales (825 $1,075) 886,875 Cost of goods sold (825 x $425) Gross margin 36,250 230,000 306,250 Additional Information a. Product cost per kayak totals $425, which consists of $325 in variable production cost and s100 in fixed production amount is based on $107,500 of fixed production costs allocated to the 1,075 kayaks produced b. The $230,000 in selling and administrative expense consists of $85,000 that is variable and $145,000 that is fixed Required 1. Prepare an income statement for the current year under variable costing $425, which c on $107,500 of fixed production costs al of $325 in variable production cost and $100 in fixed production cost-the latter amount is b. The $230,000 in selling and administrative expense consists of $85,000 that is variable and $145,000 that is fixed