Ace Company is a manufacturer of basketballs and began operations this year. The company produced $3,900$ units and sold $3,350$ units. Each basketball was sold at a price of $$48.$ Fixed overhead costs are $$49,000$ per year, and fixed selling and administrative costs are $$42,600$ per year. The company also reports the following per unit variable costs for the year.

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

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

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

Variable selling and administrative expenses $ $2\mathrm{.}00$ per unit

Compute income under variable costing.