please help solve Saved Help Save& Exit Sube Check my work Exercise 6-4 Variable

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Saved Help Save& Exit Sube Check my work Exercise 6-4 Variable costing income statement Lo P2 Kenzi Kayaking, a manufacturer of kayaks. began operations this year. During this first year, the sold 750 at a price of $1.000 each At this first absorption costing company produced 1,000 kayaks and year end, the company reported the following income statement information using Sales (750Siege Cost of goods sold (75e x S475) Gross argin selling and ndwinisteative expenses Net incone 758,eea 153,750 Additional Information a. Product cost per kayak totals $475which consists of s375 in variable production cost and st00 in fxed production cost-the latter amount is based on $100.000 of fixes production costs allocated to the 1000 keyaks produced b. The $240000 in selling and administrative expense consists of $95,000 t3t is variable and $145.000 that is fixed Required 1. Prepare an incomie statement forthe currenty

Explanation / Answer

KENZI KAYAKING Variable Costing Income Statement Particulars Amount $ Amount $ Sales (750 units @ $1,000) $ 750,000 Less: Variable costs Variable production costs (750 x $375/ unit) $ 281,250 Variable selling and administrative       95,000 Total variable costs     376,250 Contribution margin 373,750 Less: Fixed expenses Fixed selling and administrative     145,000 Fixed overhead     100,000 Total fixed costs     245,000 Net income (loss)     128,750

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