Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 7,000 rackets and sold 5,900. Each racket was sold at a price of $100. Fixed overhead costs are $98,000, and fixed selling and administrative costs are $66,200. The company also reports the following per unit variable costs for the year: Variable product costs $ 26.00 Variable selling and administrative expenses $ 3.00

Prepare an income statement under variable costing

ACES INC.
Variable Costing Income Statement
Sales		$590,000
Less: Variable costs
Variable production costs	$153,400
Variable selling and administrative expenses
Total variable costs		153,400
Contribution margin
Less: Fixed expenses
Fixed selling and administrative costs
Fixed overhead costs
Net income (loss)