QS 19.4 Absorption costing Income statement LO P2 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 variable costs for the year, $24.60 Variable product costs Variable selling and administrative expenses Prepare an income statement under absorption costing, 387,000 ACES INC. Absorption Costing Income Statement Sales Less: Cost of goods sold Variable production costs 110.700 Fixed overhead costs Contribution margin Selling general and administrative expenses el 18 Fixed overhead costs Fixed selling and administrative costs Total Selling general and administrative Net income (loss) 81 1181 SI Next Next >