6 Sims Company began operations on January 1. Its cost and sales information for this year follow. 3 points Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Units produced Units sold Sales price per unit $ 60 per unit $ 40 per unit $ 6,300,000 per year $ 11 per unit $ 4,750,000 per year 105,000 units 75,000 units $ 350 per unit 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. 6 Complete this question by entering your answers in the tabs below. Required 1 Required 2 3 points Prepare an income statement for the year using variable costing. SIMS COMPANY Income Statement (Variable Costing) Sales $ 26,250,000 Less: Variable expenses Variable cost of goods sold Variable selling and administrative expenses $ 10,500,000 825,000 11,325,000 14,925,000 Contribution margin Less: Fixed expenses Fixed overhead Fixed selling and administrative expenses 6,300,000 4,250,000 X 10,550,000 $ 4,375,000 X Income Required 1 Required 2 > 2. Prepare an income statement for the year using absorption costing. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the year using absorption costing. SIMS COMPANY Income Statement (Absorption Costing) $ 26,250,000 Sales Cost of goods sold (15,000,000) 11,250,000 5,075,000 X $ 6,175,000 Selling and administrative expenses Income