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. Sales Variable expenses ACES INCORPORATED Income Statement (Variable Costing) Variable cost of goods sold Variable selling and administrative expenses Contribution margin Fixed expenses Fixed overhead Fixed selling and administrative expenses Income (loss) $ 12.30 8.30 5.40 3.00