Question

Check my work QS 19-3 Variable costing income statement LO P2 125 points 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 eBook Variable product conta Variable selling and administrative expenses $ 25.60 $ 2.60 Hint

Answer 1

Amount ($) $ 5,28,000 Prepare an Income Statement under Variable Costing : Aces Inc., Variable Costing Income Statement Particulars Calculation $ Sales 5,500 Units @ $ 96 per Unit Less : Variable Costs Variable Product Costs 5,500 Units @ $ 25.6 per Unit $ 1,40,800 Variable Selling and Administrative Costs 5,500 Units @ $ 2.6 per Unit $ 14,300 Total Variable Costs Contribution Less : Fixed Costs Fixed Overhead Costs Given $ 89,760 Fixed Selling and Administrative Costs Given $ 65,800 Total Fixed Costs Net Income $ $ 1,55,100 3,72,900 $ $ 1,55,560 2,17,340