Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 6,800 rackets and sold 5,700. Each racket was sold at a price of $98. Fixed overhead costs are $93,840 for the year, and fixed selling and administrative costs are $66.000 for the year. The company also reports the following per unit variable costs for the year Direct materials $ 12.24 Direct labor 8.24 5.32 Variable selling and administrative expenses Required: Prepare an income statement under absorption costing, Variable overhead 2.80 ACES INCORPORATED Income Statement (Absorption Costing) Sales $ 550.000 Cost of goods sold Gross profit $ 550.600 Selling and administrative expenses income $ 558.000