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 7,650 rackets and sold 5,730. Each racket was sold at a price of $90. Fixed overhead costs are $99,450 per year, and fixed selling and administrative costs are $68,600 per year. The company also reports the following per unit variable costs for the year. Direct materials Direct labor Variable overhead Variable selling and administrative expenses $12 8 5 2 Prepare an income statement under variable costing. ACES INCORPORATED Income Statement (Variable Costing) Sales Less: Variable expenses Variable cost of goods sold $ 515,700 Variable selling and administrative expenses Contribution margin $ 143,250 5,730 148,980 Plus: Fixed expenses Fixed selling and administrative expenses Fixed overhead Fixed selling and administrative expenses Income $ 68,600 99,450 168,050