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QS 1 8 - 2 5 B ( Algo ) Variable costing income statement LO P 4 Aces Incorporated, a manufacturer of tennis rackets, began

QS 18-25B (Algo) Variable costing income statement LO P4
Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 5,500 rackets and sold 4,400. Each racket was sold at a price of $85. Fixed overhead costs are $68,750 for the year, and fixed selling and administrative costs are $64,700 for the year. The company also reports the following per unit variable costs for the year.
Direct materials
Direct labor
Variable overhead
Variable selling and administrative expenses
Required:
Prepare an income statement under variable costing.
\table[[ACES INCORPORATED],[Variable Costing Income Statement],[Sales,,s,374,000],[Variable expenses],[Variable selling and administrative expenses,$,8,250,,],[Variable cost of goods sold,110,000,,],[,,118,250],[Contribution margin],[Fixed expenses],[{
\table[[Fixed overhead],[Fixed selling and administrative costs]]}],[],[,,,]]
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