10 0.9 points Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 6,300 rackets and sold 5,200. Each racket was sold at a price of $93. Fixed overhead costs are $83,790 for the year, and fixed selling and administrative co- are $65,500 for the year. The company also reports the following per unit variable costs for the year. Direct materials Direct labor 01:55:25 Variable overhead eBook Hint Print 口 References Variable selling and administrative expenses Required: Prepare an income statement under variable costing. Sales Variable expenses ACES INCORPORATED Income Statement (Variable Costing) Variable cost of goods sold Contribution margin Gross margin Net income Net loss $ 12.09 8.09 5.12 2.30

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 10E: SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that...
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10
0.9
points
Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 6,300 rackets and sold
5,200. Each racket was sold at a price of $93. Fixed overhead costs are $83,790 for the year, and fixed selling and administrative co-
are $65,500 for the year. The company also reports the following per unit variable costs for the year.
Direct materials
Direct labor
01:55:25
Variable overhead
eBook
Hint
Print
口
References
Variable selling and administrative expenses
Required:
Prepare an income statement under variable costing.
Sales
Variable expenses
ACES INCORPORATED
Income Statement (Variable Costing)
Variable cost of goods sold
Contribution margin
Gross margin
Net income
Net loss
$ 12.09
8.09
5.12
2.30
Transcribed Image Text:10 0.9 points Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 6,300 rackets and sold 5,200. Each racket was sold at a price of $93. Fixed overhead costs are $83,790 for the year, and fixed selling and administrative co- are $65,500 for the year. The company also reports the following per unit variable costs for the year. Direct materials Direct labor 01:55:25 Variable overhead eBook Hint Print 口 References Variable selling and administrative expenses Required: Prepare an income statement under variable costing. Sales Variable expenses ACES INCORPORATED Income Statement (Variable Costing) Variable cost of goods sold Contribution margin Gross margin Net income Net loss $ 12.09 8.09 5.12 2.30
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