Question

Assignment Electronics... h e r Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate comple QS 19-3 Variable costing income statement LO P2 Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,400 rackets and sold 5,300. Each racket was sold at a price of $94. Fixed overhead costs are $85.760 and fixed selling and administrative costs are $65,600. The company also reports the following per unit costs for the year. Variable product costs Variable selling and administrative expenses Prepare an income statement under variable costing, Answer is not complete. ACES INC. Variable Costing Income Statement Sales $ 498,200 Less: Variable costs Variable product costs Variable selling and administrative expenses 134,620 12,720 Total variable costs Contribution margin OOOOO 147 340 350 860 $ 65,600 Fixed selling and administrative costs Fixed overhead costs

Answer 1

	Variable Income Statement
	Particulars	amt	amt
	Sales   (5300*94)		498200
less ;	Variable costs
	variable product cost (5300*25.40)	134620
	variable selling costs (5300*2.4)	12720
	Total Variable costs		147340
	Contribution Margin		350860
less ;	Fixed costs
	fixed over head costs	85760
	fixed administration & Selling costs	65600
	Total Fixed cost		151360
	net operating income		151360

note ; please make a comment for any clarifications