QS $18-26$B $($Algo$)$ Absorption costing income statement LOP$4$

OS 18-26B (Algo) Absorption costing income statement LO P4 Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 6,800 rackets and sold 5,700. Each racket was sold at a price of $98. Fixed overhead costs are $93,840 for the year, and fixed selling and administrative costs are $66,000 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 absorption costing. ACES INCORPORATED Income Statement (Absorption Costing) $ 12.24 8.24 5.32 2.80 Sales Cost of goods sold Gross profit Selling and administrative expenses Income 558,600 558,600 558,600