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 $1,025 each. at this first year-end, the company reported the following income statement information using absorption costing. sales (775 × $1,025) $ 794,375 cost of goods sold (775 × $475) 368,125 gross margin 426,250 selling and administrative expenses 230,000 net income $ 196,250 additional information 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 $102,500 of fixed production costs allocated to the 1,025 kayaks produced. the $230,000 in selling and administrative expense consists of $95,000 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: