Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 7,050 rackets and sold 5,430. Each racket was sold at a price of $90. Fixed overhead costs are $91,650 per year, and fixed selling and administrative costs are $67,400 per year. The company also reports the following per unit variable costs for the year. Direct materials Direct labor Variable overhead Variable selling and administrative expenses Prepare an income statement under variable costing. ACES INCORPORATED Income Statement (Variable Costing) $ 12 8 Check my Sales $ 488,700 Less: Variable expenses Variable cost of goods sold $ 146,610 Variable selling and administrative expenses 10,860 Variable cost of goods sold Contribution margin 157,470 342,090 Less: Fixed expenses Fixed overhead $ 91,650 Fixed selling and administrative expenses 67,400 Variable cost of goods sold 159,050 Income $ 183,040