Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 5,400 rackets and sold 4,300. Each racket was sold at a price of $84. Fixed overhead costs are $66,960 for the year, and fixed selling and administrative costs are $64,600 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 $11.82 7.82 4.76 1.40 Required: Prepare an income statement under variable costing, Answer is complete but not entirely correct. ACES INCORPORATED Income Statement (Variable Costing) Sales $ 361,200 Variable expenses Variable overhead 50.826 X Variable selling and administrative expenses 33,626 Variable cost of goods sold 20,468 X 84,452 Contribution margin 250.260 Fixed expenses Fixed overhead $ 66,960 Fixed selling and administrative expenses 64,600 Variable selling and administrative expenses X 131,560 Income (loss) $ 118,700