Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 5,000 rackets and sold 3,900. Each racket was sold at a price of $80. Fixed overhead costs are $60,000 for the year, and fixed selling and administratives costs are $64,200 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 Answer is not complete. Contribution margin ACES INCORPORATED Variable Costing Income Statement Sales Variable expenses Variable cost of goods sold Variable selling and administrative expenses Fixed expenses Fixed selling and administrative costs Fixed overhead 1000 0000 $ 11.70 7.70 4.60 1.00

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 5,000 rackets and sold
3,900 Each racket was sold at a price of $80, Fixed overhead costs are $60,000 for the year, and fixed selling and administrative
costs are $64,200 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
Sales
Variable expenses
Answer is not complete.
ACES INCORPORATED
Variable Costing Income Statement
Variable cost of goods sold
Variable selling and administrative expenses
Income (loss)
Contribution margin
Fixed expenses
Fixed selling and administrative costs
Fixed overhead
0000
0000
$11.70
7.70
4.00
1.00
Transcribed Image Text:Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 5,000 rackets and sold 3,900 Each racket was sold at a price of $80, Fixed overhead costs are $60,000 for the year, and fixed selling and administrative costs are $64,200 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 Sales Variable expenses Answer is not complete. ACES INCORPORATED Variable Costing Income Statement Variable cost of goods sold Variable selling and administrative expenses Income (loss) Contribution margin Fixed expenses Fixed selling and administrative costs Fixed overhead 0000 0000 $11.70 7.70 4.00 1.00
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