QS 18-20B Absorption costing income statement LO P5 Aces Inc., 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, and fixed selling and administrative costs are $64.800. The company also reports the following per unit costs for the year: Variable production costs Variable selling and administrative expenses $24.60 $ 1.60 Required: Prepare an income statement under absorption costing. S 387.000 ACES INC. Absorption Costing Income Statement Sales Less: Cost of goods sold Fixed overhead costs Variable production costs 110.700 110.700 218.340 Cost of goods sold Gross margin Selling general and administrative expenses Fixed selling and administrative costs Variable selling and administrative expenses 64.800 7,200 Total selling general and administrative expenses 72.000 146,340 Net income (loss) $