Ace Company is a manufacturer of basketballs and began operations this year. The company produced 5,000 units and sold 4,450 units. Each basketball was sold at a price of $42. Fixed overhead costs are $60,000 per year, and fixed selling and administrative costs are $53,600 per year. The company also reports the following per unit variable costs for the year.

Direct materials	$ 6.00	per unit
Direct labor	$ 4.00	per unit
Variable overhead	$ 3.00	per unit
Variable selling and administrative expenses	$ 1.00	per unit

Compute income under variable costing.

Multiple Choice

• $11,000

• $170,950

• $124,600

• $57,350

• $113,600