Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,000 rackets and sold 4,900. Each racket was sold at a price of $90. Fixed overhead costs are $78,000 and fixed selling and administrative costs are $65,200. The company also reports the following per unit costs for the year:

Variable production costs . . . . . . . . . . . . . . . . . . . . . . . $25.00

Variable selling and administrative expenses . . . . . . . . . 2.00

Prepare an income statement under variable costing.

Aces Inc a manufacturer of tennis rackets began operations this