Chapter 6 Homework 5 Saved Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate Part 3 of 4 1 points 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 7,050 rackets and sold 5,430. Each racket was sold at a price of $90. Fixed overhead costs are $91,650 per year, and fixed selling and administrative costs are $67,400 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 5 Prepare an income statement under absorption costing. Answer is not complete. ACES INCORPORATED Income Statement (Absorption Costing) Sales 488,700 Cost of goods sold Gross profit Selling and administrative expenses Income 488,700 (78,260) 410,440