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[The following information applies to the questions displayed below.] Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 7,450 rackets and sold 5,630. Each racket was sold at a price of $90. Fixed overhead costs are $96,850 per year, and fixed selling and administrative costs are $68,200 per year. The company also reports the following per unit variable costs for the year.

Direct materials	$ 12
Direct labor	8
Variable overhead	5
Variable selling and administrative expenses	2

Required information [The following information applies to the questions displayed below.) Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 7,450 rackets and sold 5,630. Each racket was sold at a price of $90. Fixed overhead costs are $96,850 per year, and fixed selling and administrative costs are $68,200 per year. The company also reports the following per unit variable costs for the year. Direct materials $ 12 Variable overhead Variable selling and administrative expenses Direct labor NUNC 5 Prepare an income statement under absorption costing. ACES INCORPORATED Income Statement (Absorption Costing) 0 $ 0 Prepare an income statement under absorption costing. ACES INCORPORATED Income Statement (Absorption Costing) 0 $ 0 Contribution margin Income Loss Sales Selling and administrative expenses