4 SIMS COMPANY 5 Income Statement (Absorption Costing) 6 Sales 7 Cost of goods sold 8 Gross profit + 9 Selling and administrative expenses 10 Income 11 12 13 14 Students: The scratchpad area is for you to do any additional work you need to solve this question or can be used to show your work. 15 Nothing in this area will be graded, but it will be submitted with your assignment. 16 17 18 Direct materials 40 per unit 40 40 19 Direct labor 60 per unit 60 60 20 Variable overhead 30 per unit 30 30 21 Fixed overhead 7000000 per year 130 70 22 Variable selling and administrative expenses 11 per unit 200 23 Fixed selling and administrative expenses 4250000 per year 24 Units produced 100000 units 25 Units sold 70000 units Sales price 350 per unit 27 28