Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 5,600 rackets and sold 4,500. Each racket was sold at a price of $86. Fixed overhead costs are $70,560 for the year, and fixed selling and administrative costs are $64,800 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 Required: Prepare an income statement under variable costing. ACES INCORPORATED Income Statement (Variable Costing) Sales Variable expenses ces Variable cost of goods sold Variable selling and administrative expenses Variable overhead Income (loss) $ 11.88 7.88 4.84 1.60 $ 387,000