expenses are variable. Compute net income under variable costing

absorption costing. Sales (4,900 x $90) Cost of goods sold (4, 900 x $38) Gross profit Selling and administrative expenses Income Peak, Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 6,000 rackets and sold 4,900. At year-end, the company reported the following income statement using 441, ooo 186,200 254, 179,800 75,000 Production costs per tennis racket total $38, which consists of $25 in variable production costs and $13 in fixed production costs (based on the 6,000 units produced). Ten percent of total selling and administrative expenses are variable. Compute net income under variable costing