exercise 6-8 (algo) variable costing income statement lo p2 kenzi, a manufacturer of kayaks, began operations this year. during this year, the company produced 1,050 kayaks and sold 800 at a price of $1,050 each. at year-end, the company reported the following income statement information using absorption costing. sales (800 × $1,050)$ 840,000 cost of goods sold (800 × $400)320,000 gross profit520,000 selling and administrative expenses240,000 income$ 280,000 additional information a. product cost per kayak under absorption costing totals $400, which consists of $300 in direct materials, direct labor, and variable overhead costs and $100 in fixed overhead cost. fixed overhead of $100 per unit is based on $105,000 of fixed overhead per year divided by 1,050 kayaks produced. b. the $240,000 in selling and administrative expenses consists of $95,000 that is variable and $145,000 that is fixed. prepare an income statement for the current year under variable costing.