Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 7,450 rackets and sold 5,630. Each racket was sold at a price of $90. Fixed overhead costs are $96,850 per year, and fixed selling and administrative costs are $68,200 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. Answer is complete but not entirely correct. ACES INCORPORATED Sales Income Statement (Variable Costing) $ 506,700 Plus: Variable expenses Variable selling and administrative expenses Variable cost of goods sold Variable cost of goods sold Contribution margin Plus: Fixed expenses Fixed overhead Fixed selling and administrative expenses Income 000000000 140,750 11,260 $ 96,850 O 152,010 304,020 68,200 165,050 $ 268,720 $ 12 8 5 2