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 Variable selling and administrative expenses $26.00 $ 3.00 Prepare an income statement under absorption costing. Answer is complete but not entirely correct. $ 590 000 ACES INC. Absorption Costing Income Statement Sales Less: Cost of goods sold Fixed overhead costs 98,000 Variable production costs 153,400 251,400 338,600 Cost of goods sold Gross margin Selling general and administrative expenses Fixed selling and administrative costs Variable selling and administrative expenses 66,200 17700 Total foxed expenses Net income (loss) 83,900 $ 500,400