QS 19-4 Absorption costing income statement LO P2 Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 5,400 rackets and sold 4,300. Each racket was sold at a price of $84. Fixed overhead costs are $66,960 and fixed selling and administrative costs are $64,600. The company also reports the following per unit variable costs for the year: variable produet coats Variable elling and administrative expenses $24.40 1.40 Prepare an income statement under absorption costing. Answer is complete but not entirely correct. ACES INC. Absorption Costing Income Statement $ 361,200 Sales Less: Cost of goods sold Variable production costs 131,760 66,960x (40,480x Fixed overhead costs Cost of goods sold 158,240 Gross margin 202,960 Selling general and administrative expenses Variable selling and administrative 6,020 expenses 64,600 Fixed selling and administrative costs Total Selling general and administrative expenses 70,620 $ 132,340 Net income (loss)