Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,000 rackets and sold 4,900. Each racket was sold at a price of $90. Fixed overhead costs are $78,000 and fixed selling and administrative costs are $65,200.

The company also reports the following per unit costs for the year Prepare an income statement under VARIABLE costing:

Variable production costs $ 25.00 Variable selling and administrative expenses $ 2.00