Flying Disk, inc. produces frisbees. They sell each custom frisbee for $50 per unit. In the coming year, they plan on producing 25,000 units. Their initial sales estimates are that they will sell 20,000 units. Flying Disk, inc also have the following cost estimates:

Variable costs per unit:

Manufacturing:

Direct materials$7

Direct labor$10

Variable manufacturing overhead$5

Variable selling and administrative$6

Fixed costs per year:

Fixed manufacturing overhead$300,000

Fixed selling and administrative$190,000

Prepare the Variable Costing Income Statement for the information stated above.