6 Skipped Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 6,600 rackets and sold 5,500. Each racket was sold at a price of $96. Fixed overhead costs are $89,760 for the year, and fixed selling and administrative costs are $65,800 for the year. The company also reports the following per unit variable costs for the year. Direct materials Direct labor Variable overhead Variable selling and administrative expenses Required: Prepare an income statement under variable costing. ACES INCORPORATED Variable Costing Income Statement $ 12.18 8.18 5.24 2.60 Sales Cost of goods sold Variable cost of goods sold Fixed overhead Variable cost of goods sold Gross margin Fixed expenses Fixed selling and administrative costs Income (loss)