QS 18-19B Variable costing income statement LO P5

Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,600 rackets and sold 5,500. Each racket was sold at a price of $96. Fixed overhead costs are $89,760, and fixed selling and administrative costs are $65,800. The company also reports the following per unit costs for the year:

QS 18-19B Variable costing income statement LO P5 Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,600 rackets and sold 5,500. Each racket was sold at a price of $96. Fixed overhead costs are $89,760, and fixed selling and administrative costs are $65,800. The company also reports the following per unit costs for the year: Variable production costs Variable selling and administrative expenses $ 25.60 $ 2.60 Required: Prepare an income statement under variable costing. ACES INC. Variable Costing Income Statement Sales Less: Variable costs Variable selling and administrative expenses Net income (loss)