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 1,050 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 $1,950) Cost of goods sold (800 x $475) Gross margin Selling and administrative expenses Net income $840,000 380,000 460,000 240,000 $ 220,000 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 $105,000 of fixed production costs allocated to the 1,050 kayaks produced b. The $240,000 in selling and administrative expense consists of $95,000 that is variable and $145,000 that is fixed. Required 1. Prepare an income statement for the current year under variable costing KENZI KAYAKING Variable Costing Income Statement Net income (loss)