#$3$ Chapter $19$

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.

$\begin{array}{cc}\text{D}\text{i}\text{r}\text{e}\text{c}\text{t}\text{m}\text{a}\text{t}\text{e}\text{r}\text{i}\text{a}\text{l}\text{s}& \text{\$}12\\ \text{D}\text{i}\text{r}\text{e}\text{c}\text{t}\text{l}\text{a}\text{b}\text{o}\text{r}& 8\\ \text{V}\text{a}\text{r}\text{i}\text{a}\text{b}\text{l}\text{e}\text{o}\text{v}\text{e}\text{r}\text{h}\text{e}\text{a}\text{d}& 5\\ \text{V}\text{a}\text{r}\text{i}\text{a}\text{b}\text{l}\text{e}\text{s}\text{e}\text{l}\text{l}\text{i}\text{n}\text{g}\text{a}\text{n}\text{d}\text{a}\text{d}\text{m}\text{i}\text{n}\text{i}\text{s}\text{t}\text{r}\text{a}\text{t}\text{i}\text{v}\text{e}\text{e}\text{x}\text{p}\text{e}\text{n}\text{s}\text{e}\text{s}& 2\end{array}$

Prepare an income statement under variable costing.

ACES INCORPORATED