Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 7,000 rackets and sold 5,900. Each racket was sold at a price of $100. Fixed overhead costs are $98,000 for the year, and fixed selling and administrative costs are $66,200 for the 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 Required: Prepare an income statement under variable costing. $ 12.30 8.30 5.40 3.00 Answer is complete but not entirely correct. ACES INCORPORATED Variable Costing Income Statement Sales $ 469,200 Variable expenses $ Variable cost of goods sold 128,520 Variable selling and administrative expenses 11,220 Fixed overhead 139,740 Contribution margin 329,460 Fixed expenses Fixed overhead $ 81,840 Fixed selling and administrative costs 65,400 x Variable overhead Income (loss) 147,240 $ 182,220