QS 18-26B (Algo) Absorption costing income statement LO P4 Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 5,800 rackets and sold 4,700. Each racket was sold at a price of $88. Fixed overhead costs are $74,240 for the year, and fixed selling and administrative costs are $65,000 for the year. The company also reports the following per unit variable costs for the year: Direct materials $ 11.94 Direct labor Variable overhead variable selling and administrative expenses Required: Prepare an income statement under absorption costing. 7.94 4.92 1.80 ACES INCORPORATED Income Statement (Absorption Costing)