Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 5,000 rackets and sold 3,900. Each racket was sold at a price of $80. Fixed overhead costs are $60,000 for the year, and fixed selling and administrative costs are $64,200 for the year. The company also reports the following per unit variable costs for the year:

Direct materials	$ 11.70
Direct labor	7.70
Variable overhead	4.60
Variable selling and administrative expenses	1.00

Required: Prepare an income statement under absorption costing.

Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 5,000 rackets and sold 3,900. Each racket was sold at a price of $80. Fixed overhead costs are $60,000 for the year, and fixed selling and administrative costs are $64,200 for the year. The company also reports the following per unit variable costs for the year:

Direct materials	$ 11.70
Direct labor	7.70
Variable overhead	4.60
Variable selling and administrative expenses	1.00

Required: Prepare an income statement under absorption costing.

Aces Incorporated
Income Statement (Absorption Costing)
Sales	312,000
Cost of Goods Sold
Gross Profit
Selling and Administrative Expense
Income