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	$	25.00
Variable selling and administrative expenses	$	2.00

Prepare an income statement under variable costing.

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 $25.00 $ 2.00 Prepare an income statement under variable costing. Answer is complete but not entirely correct. $ 441,000 ACES INC. Variable Costing Income Statement Sales Less: Cost of goods sold Variable production costs 122,500 Fixed overhead costs 63,700 186,200 254,800 X Cost of goods sold Gross margin Less: Fixed expenses Fixed selling and administrative costs Variable selling and administrative expenses $ 65,200 9,800 x Total fixed expenses 75,000 Prepare an income statement under variable costing. Answer is complete but not entirely correct. ACES INC. Variable Costing Income Statement Sales $ 441,000 Less: Cost of goods sold Variable production costs 122,500 Fixed overhead costs 63,700 186,200 254,800 X x Cost of goods sold Gross margin Less: Fixed expenses Fixed selling and administrative costs Variable selling and administrative expenses $ 65,200 9,800 X Total fixed expenses Net income (loss) 75,000 $ 179,800