Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 6,500 rackets and sold 5,400. Each racket was sold at a price of $95. Fixed overhead costs are $87,750 for the year, and fixed selling and administrative costs are $65,700 for the year. The company also reports the following per unit variable costs for the year. Direct materials $ 12.15 Direct labor 8.15 Variable overhead 5.20 Variable selling and administrative expenses 2.50 Required: Prepare an income statement under variable costing.