Ace Company is a manufacturer of basketballs and began operations this year. The company produced $4,000$ units and sold $3,450$ units. Each basketball was sold at a price of $$49.$ Fixed overhead costs are $$50,000$ per year, and fixed selling and administrative costs are $$43,600$ per 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

$$7\mathrm{.}00$ per unit

$$5\mathrm{.}00$ per unit

$$4\mathrm{.}00$ per unit

$$2\mathrm{.}00$ per unit

Compute income under variable costing.