Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced $6,500$ rackets and sold $5,400.$ Each racket was sold at a price of $$95.$ Fixed overhead costs are $$87,750$ for the year, and fixed selling and administrative costs are $$65,700$ for the year. The company also reports the following per unit variable costs for the year.

Direct materials $ $12\mathrm{.}15$

Direct labor $8\mathrm{.}15$

Variable overhead $5\mathrm{.}20$

Variable selling and administrative expenses $2\mathrm{.}50$

Required:

Prepare an income statement under variable costing.