Aces,Inc,A Manufacturer of Tennis Rackets,began Operations This Year

Multiple Choice

Aces,Inc.,a manufacturer of tennis rackets,began operations this year.The company produced 6,000 rackets and sold 4,900.At year-end,the company reported the following income statement using absorption costing. Production costs per tennis racket total $38,which consists of $25 in variable production costs and $13 in fixed production costs (based on the 6,000 units produced) .Ten percent of total selling and administrative expenses are variable.Compute net income under variable costing.

A) $194,100
B) $165,500
C) $311,000
D) $240,500
E) $233,000