Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 7,850 rackets and sold 5,830. Each racket was sold at a price of $90. Fixed overhead costs are $102,050 per year, and fixed selling and administrative costs are $69,000 per year. The company also reports the following per unit variable costs for the year.

Direct materials	$ 12
Direct labor	8
Variable overhead	5
Variable selling and administrative expenses	2

Prepare an income statement under variable costing.