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Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,800 rackets and sold 5,700. Each racket was sold at a
Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,800 rackets and sold 5,700. Each racket was sold at a price of $98. Fixed overhead costs are $93,840, and fixed selling and administrative costs are $66,000. The company also reports the following per unit variable costs for the year:
Variable product costs $25.80
Variable selling and administrative expenses $2.80
Prepare an income statement under absorption costing.
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