Ace Company is a manufacturer of basketballs and began operations this year. The company produced 4,700 units and sold 4,150 units. Each basketball was sold at a price of $50. Fixed overhead costs are $57,000 per year, and fixed selling and administrative costs are $50,600 per year. The company also reports the following per unit variable costs for the year. Direct materials $ 8.00 per unit Direct labor $ 6.00 per unit Variable overhead $ 5.00 per unit Variable selling and administrative expenses $ 3.00 per unit Compute income under variable costing