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 variable costs for the year Variable product costs Variable selling and administrative expenses 38 Prepare an income statement under variable costing. ACES INC. Variable Costing Income Statement Sales P O S 441,000 Loss Cost of goods sold Variable production costs 122,500 Fixed overhead costs 63,700 Cost of goods sold Gross margin Less: Fixed expenses Fixed selling and administrative costs Variable selling and administrative expenses 186.200 254,800 1 $ 65 200 9800