Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 5,500 rackets and sold 4,400. Each racket was sold at a price of $85. Fixed overhead costs are $68,750, and fixed selling and administrative costs are $64,700. The company also reports the following per unit variable costs for the year. Variable product costs Variable selling and administrative expenses $24.50 $ 1.50 Prepare an income statement under absorption costing. ACES INC Absorption Costing Income Statement Sales Less: Variable costs Variable production costs $ 107,800 Variable selling and administrative expenses 6,600 $ 374,000 114 400 269,600 Total variable costs Contribution margin Selling general and administrative expenses Fored overhead costs Fued selling and administrative costs 68.750 64.700 Total fed expenses Net Income (loss) 133,450 126,150 5