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 1,025 kayaks and sold 775. at a price of $1025 each. At this first year-end, the company reported the following income statement information using absorption costing $ 94.375 348,750 Sales (775 * $1,025) Cost of goods sold (775 5450) Gross margin Selling and administrative expenses Net Income 210.000 $ 235,625 Additional Information Product cost per kayak totals $450, which consists of $350 in variable production cost and $100 in fixed production cost-the latter amount is based on $102.500 of fixed production costs allocated to the 1,025 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 Required 1. 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