Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,400 rackets and sold 5,300. Each racket was sold at a price of $94. Fixed overhead costs are $85,760 and fixed selling and administrative costs are $65,600. The company also reports the following per unit variable costs for the year:

Variable product costs	$	25.40
Variable selling and administrative expenses	$	2.40

Prepare an income statement under absorption costing.

ACES INC.
Absorption Costing Income Statement
Sales		$498,200
Less: Cost of goods sold
Variable production costs	134,620
Variable selling and administrative expenses	12,720
Total variable costs		147,340
Gross margin		350,860
Selling general and administrative expenses
Variable selling and administrative expenses	12,720
Fixed overhead costs
Total fixed expenses		12,720
Net income (loss)

i know the bottom chart is not correct so i need help figuring it out.