QS $18-25$B $($Algo$)$ Variable costing income statement LO P$4$

Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced $5,500$ rackets and sold $4,400.$ Each racket was sold at a price of $$85.$ Fixed overhead costs are $$68,750$ for the year, and fixed selling and administrative costs are $$64,700$ for the 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

Required:

Prepare an income statement under variable costing.

$\backslash$table$[[$ACES INCORPORATED$],[$Variable Costing Income Statement$],[$Sales$,,s,374,000],[$Variable expenses$],[$Variable selling and administrative expenses,$$,8,250,,],[$Variable cost of goods sold,$110,000,,],[,,118,250],[$Contribution margin$],[$Fixed expenses$],[\{$

$\backslash$table$[[$Fixed overhead$],[$Fixed selling and administrative costs$]]\}],[],[,,,]]$

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