Exercise 19-3 Income reporting under absorption costing and variable costing LO P2 Sims Company, a manufacturer of tablet computers, began operations on January 1 2017 Its cost and sales information for this year follows. 40 per unit 60 per unit $4,200,000 $6,300.000 Manufacturing costs Direct materials Direct labor overhead costs for the year Variable overhead Fixed overhead Selling and administrativo contator the year Variable exed Production and wales for the year Units produced Units sold Sales price per un $ 275,000 $4,500,000 105,000 unit 75,000 unite 150 per unit 1. Prepare an income statement for the year using variable costing, 2. Prepare an income statement for the year using absorption costing 3. Under what circumstance(s) is reported income identical under both absorption costing and variable costing